RBS bank chief Stephen Hester to forgo bonus

 

RBS chief executive Stephen Hester has announced that he will forgo his bonus this year because of the problems caused to thousands of customers by a failure in the company's computers.

The IT glitch delayed payments to NatWest, Royal Bank of Scotland and Ulster Bank accounts, leaving some customers short of cash and even forcing one man to spend a weekend in prison when his bail money was not available.

Mr Hester said today that the problems were caused by issues dating back to before he arrived at RBS in 2008, but taking a bonus would be "inappropriate".

He told the BBC: "I think it is inappropriate for me to have a bonus this year. We have let our customers down.

"That may have arisen from old systems and things that were from before my time, but I think we could reasonably have been expected to have improved things since then and clearly we didn't improve them enough.

"So it wouldn't cross my mind to have a bonus this year."

A spokeswoman for RBS Group said there was no figure for the bonus Mr Hester would have received, as it was more a case of him not being considered for one.

The meltdown, which began on Tuesday last week, meant that debits and credits have not been showing up in customers' accounts, leaving people with disappearing wages, disrupted holidays and difficulties with house moves.

RBS Group has extended its opening hours to cope with the chaos and even took the step of opening on a Sunday this week for the first time.

The banking group has promised that no one will be left out of pocket over the problems and has urged people to keep a record of how they were affected.

Fears have been raised that some people may unknowingly end up with blots on their credit scores, but the group has said it is working with agencies to make sure this does not happen.

Bank of England Governor Sir Mervyn King said earlier today that Britain's banks need a "real change in culture" following a series of high-profile scandals.

The Financial Services Authority (FSA) has revealed that RBS and other lenders have agreed to pay compensation to customers who were mis-sold complex financial products, called interest rate swaps.

Barclays has already been fined £290 million by UK and US regulators for manipulating the rate at which banks lend to each other.

RBS is among several lenders being investigated by the City watchdog over trying to influence the Libor - London interbank offered rate - and Euribor interbank lending rates to boost profits.

Mr Hester has previously been forced to waive his £963,000 all-shares bonus amid public outrage over bankers' pay.

RBS paid £785 million in bonuses last year, including £390 million for its 17,000 investment bankers. While the total pot is 43% lower than the previous year, it followed a period in which the bank announced thousands of job cuts.

Treasury Select Committee chairman Andrew Tyrie has written to Mr Hester demanding detailed information about the computer problems.

Mr Tyrie said earlier this week: "It is clearly unacceptable that so many people have suffered, and continue to do so, as a result of what looks to have been a major IT failure."

Mr Tyrie said it was also important to know what action the regulators have been taking to ensure proper oversight of the banks' computer systems.

Speculation has mounted over the cause, with unconfirmed reports suggesting that an inexperienced technician in India was behind the meltdown.

The problems reportedly began after a swathe of information was erased during a routine software upgrade for the banks, affecting the back-up systems as well as the live computer.

RBS Group have not confirmed whether or not the problems began in India but simply said staff in Edinburgh are working to put the issues right.

PA

Suggested Topics
News
peopleFrankie Boyle responds to referendum result in characteristically offensive style
News
news
Life and Style
Couples have been having sex less in 2014, according to a new survey
life
New Articles
i100... with this review
PROMOTED VIDEO
Voices
Holly's review of Peterborough's Pizza Express quickly went viral on social media
Sport
footballTim Sherwood: This might be th match to wake up Manchester City
Arts and Entertainment
musicHow female vocalists are now writing their own hits
New Articles
i100
News
ebooksAn unforgettable anthology of contemporary reportage
News
news
Arts and Entertainment
musicBiographer Hunter Davies has collected nearly a hundred original manuscripts
News
Blahnik says: 'I think I understand the English more than they do themselves'
people
Arts and Entertainment
Michelle Dockery as Lady Mary Crawley in Downton Abbey
TVInside Downton Abbey series 5
Life and Style
The term 'normcore' was given the oxygen of publicity by New York magazine during the autumn/winter shows in Paris in February
fashionWhen is a trend a non-trend? When it's Normcore, since you ask
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Market Risk & Control Manager

Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...

SQL Developer - Watford/NW London - £320 - £330 p/d - 6 months

£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Head of Audit

To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...

Day In a Page

Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam