Stephen Hester, Royal Bank Of Scotland CEO, Turns Down Bonus Amid …

Stephen Hester, Royal Bank Of Scotland CEO, Turns Down Bonus Amid …, The chief executive of Britain’s state-rescued Royal Bank of Scotland has turned down his hotly-disputed bonus of shares worth close to £1 million, RBS said Monday, amid a row over executive pay.

Stephen Hester was due to receive a £963,000 ($1.5 million, 1.15 million euro) bonus this year on top of his £1.2 million salary, the bank had said Thursday.

That announcement — amid government calls for pay restraint during the continuing economic gloom — sparked outrage from trade unions and the opposition Labour Party.

But the bank said Hester would not be taking the shares after all.

“I can confirm that he has decided not to accept the bonus,” an RBS spokesman told AFP.

The fact that the sum was less than half the £2 million Hester was given a year earlier had failed to dent the criticism.

British taxpayers own 82 percent of RBS since it was bailed out at the height of the global financial crisis in 2008. Since then, it has slashed tens of thousands of jobs.

Hester’s move was welcomed by finance minister George Osborne.

“This is a sensible and welcome decision that enables Stephen Hester to focus on the very important job he has got to do, namely to get back billions of pounds of taxpayers’ money that was put into RBS,” the chancellor said.

The announcement came after the opposition Labour Party said it planned to force a parliamentary vote calling for Hester to be stripped of the bonus, as it sought to heap pressure on Prime Minister David Cameron’s coalition government over the issue.

The government had been criticised for not stepping in, but ministers insisted it was a decision best left to Hester.

Fred Goodwin Stripped Knighthood

Fred Goodwin Stripped Knighthood, Britain stripped the former head of Royal Bank of Scotland of his knighthood on Tuesday, putting a banker reviled by tabloids as “Fred the Shred” alongside Zimbabwe’s Robert Mugabe and Romania’s Nicolae Ceausescu as those who lost the high honour.

Fred Goodwin, elevated to the rank of knight of the realm by Queen Elizabeth in 2004, steered one of Britain’s largest banks to near collapse with the catastrophic buyout of a Dutch bank, a disaster that helped bring on the global financial crisis.

He has become a target of public fury in Britain for his role in the 2008 crash – which led to the government spending 45 billion pounds to bail out his bank – and the lavish taxpayer-funded pension he took with him when he left.

“RBS came to symbolise everything that went wrong with the British economy over the last decade and under Fred Goodwin that’s when it happened and I think it’s appropriate therefore that he loses his knighthood,” Britain’s Conservative Finance Minister George Osborne said.

The decision to strip Goodwin of his knighthood came two days after Goodwin’s successor at RBS, Stephen Hester, announced he would turn down a million pound share bonus that had drawn withering scorn from all of Britain’s major political parties.

A report in December by the Financial Services Authority (FSA) regulator into the near-collapse of RBS blamed Goodwin and other former RBS bosses, while also criticising the FSA itself and the then-Labour government for lightweight financial regulation.

Conservative Prime Minister David Cameron expressed satisfaction at the decision to strip Goodwin of the knighthood, while opposition Labour Party leader Ed Miliband – who had demanded a parliamentary debate on Hester’s bonus – continued to call for deeper reforms at banks.

“It is right Fred Goodwin has lost his knighthood but it is only the start of the change we need to see. We need to change the bonus culture and we need to change the rules so we see real responsibility across the board,” he said.