RBS chairman declines £1.4m bonus

 

The chairman of the taxpayer-funded Royal Bank of Scotland (RBS) will not receive a shares bonus worth £1.4 million, the bank said today.

Sir Philip Hampton's decision comes days after RBS chief executive Stephen Hester came under fire over a £963,000 bonus awarded to him.

An RBS spokesman said: "Sir Philip Hampton will not receive the 5.17 million shares he was awarded in 2009 when he joined RBS."

Sir Philip is thought to have told the bank's remuneration committee it would not be appropriate for him to take the shares to which he is entitled.

He was given the scheme when he was appointed at the 83%-state-owned bank as part of a three-year long-term incentive deal.

It is understood RBS were not due to offer Sir Philip the share bonus, which is based on a variety of factors, until next month.

But the chairman chose to waive the entitlement earlier.

Sir Philip's decision is likely to pile more pressure on Mr Hester, who has faced calls from unions, politicians and the public to turn down his award of almost £1 million.

Prime Minister David Cameron insisted it was up to the chief executive to decide whether to give up his bonus.

"It's a matter for him," he said at Chequers.

"It's obviously his decision. My decision is to make sure the team at RBS get on with the job of turning the bank round and we made our views very clear on the bonus and that's why it was cut in half compared to last year."

Scotland's First Minister Alex Salmond, who is a former RBS economist, said: "This is a welcome development but these circumstances cannot be left to individual decisions. They must be a matter of public policy.

"On this matter the Westminster parties have shown themselves to be totally deficient."

He called for pay restraint to help sustain public services, adding: "How can that be maintained against the background of huge bonuses being paid in organisations which are still within the public sector? This blatant inequality thus threatens economic recovery.

"Both the coalition government and the Labour party are equally culpable.

"Labour negotiated the very deal with Stephen Hester that they now complain about while the coalition parties huff and puff about shareholder democracy but stand by idly when they carry responsibility for the public shareholding.

"They also have the option of a further tax on bonuses but instead all the Tory rhetoric is on reducing the top rate of tax.

"Collectively the Westminster parties display the complete abdication of responsibility of political parties out of touch with the public of both Scotland and England."

PA

Start your day with The Independent, sign up for daily news emails
Have you tried new the Independent Digital Edition apps?
News
ebooksAn unforgettable anthology of contemporary reportage
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 General

Recruitment Genius: Sales Executive - OTE £45,000

£18000 - £45000 per annum: Recruitment Genius: A Sales Executive is required t...

Recruitment Genius: Test Development Engineer

£35000 - £40000 per annum: Recruitment Genius: Are you inspired to bring new a...

Recruitment Genius: Trainee Motor Engineer

£14000 - £18000 per annum: Recruitment Genius: This is an exciting opportunity...

Recruitment Genius: Technical Administrator

£15000 - £18000 per annum: Recruitment Genius: This company are a world leadin...

Day In a Page

On your feet! Spending at least two hours a day standing reduces the risk of heart attacks, cancer and diabetes, according to new research

On your feet!

Spending half the day standing 'reduces risk of heart attacks and cancer'
Liverpool close in on Milner signing

Liverpool close in on Milner signing

Reds baulk at Christian Benteke £32.5m release clause
With scores of surgeries closing, what hope is there for the David Cameron's promise of 5,000 more GPs and a 24/7 NHS?

The big NHS question

Why are there so few new GPs when so many want to study medicine?
Big knickers are back: Thongs ain't what they used to be

Thongs ain't what they used to be

Big knickers are back
Thurston Moore interview

Thurston Moore interview

On living in London, Sonic Youth and musical memoirs
In full bloom

In full bloom

Floral print womenswear
From leading man to Elephant Man, Bradley Cooper is terrific

From leading man to Elephant Man

Bradley Cooper is terrific
In this the person to restore our trust in the banks?

In this the person to restore our trust in the banks?

Dame Colette Bowe - interview
When do the creative juices dry up?

When do the creative juices dry up?

David Lodge thinks he knows
The 'Cher moment' happening across fashion just now

Fashion's Cher moment

Ageing beauty will always be more classy than all that booty
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination

Health fears over school cancer jab

Shock new Freedom of Information figures show how thousands of girls have suffered serious symptoms after routine HPV injection
Fifa President Sepp Blatter warns his opponents: 'I forgive everyone, but I don't forget'

'I forgive everyone, but I don't forget'

Fifa president Sepp Blatter issues defiant warning to opponents
Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report

Weather warning

Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report
LSD: Speaking to volunteer users of the drug as trials get underway to see if it cures depression and addiction

High hopes for LSD

Meet the volunteer users helping to see if it cures depression and addiction
German soldier who died fighting for UK in Battle of Waterloo should be removed from museum display and given dignified funeral, say historians

Saving Private Brandt

A Belgian museum's display of the skeleton of a soldier killed at Waterloo prompts calls for him to be given a dignified funeral