Hester urges RBS staff to prove thecritics wrong

Stephen Hester, the chief executive of the Royal Bank of Scotland, has come out fighting to protect his and the taxpayer-owned bank's reputation as the political and public furore over City bonuses continued.

In his first statement since he turned down the £963,000 share bonus which the RBS board awarded him for 2011, he launched a rallying cry to the bank's staff, saying: "The best way to deal with it is to prove the critics wrong."

He said: "There is no doubt our position in the spotlight makes the job harder. And we can't know how much damage that will do to RBS or the interests of those we serve, whether as customers or shareholders."

Labour yesterday called for a ban on large bonuses in bailed-out banks except for "genuinely exceptional performance". The taxpayer owns 82 per cent of RBS and is sitting on a loss of £22bn from the £45bn bailout.

Mr Hester, right, told staff that what "we" need to do is "to be purposeful, calm, and do our jobs to the best of our ability. And have confidence and pride in what we have done and what we can accomplish."

He added: "We should try to be strong, to deal with facts not fears. "

Following the removal of Fred Goodwin's knighthood last week, Mr Hester said: "I am acutely conscious that the way our company has been in the media and political spotlight this last 10 days is discomforting to say the least.

"And while it has been personalised in different ways, whether on myself or my predecessor, many have felt a broader impact on RBS of the uncertainty and criticism."