RBS chief executive told he is paid to much by parents

Royal Bank of Scotland chief executive Stephen Hester told parliament that even his parents believed that he was overpaid. Hester was answering questions put to him by the Treasury Select Committee of MPs.

The Select Committee is investigating pay and bonuses of the state-controlled banks. Even though his friends and family believe he is over paid, Stephen said his package was worthless at the moment as he has agreed to take no cash in the first year, however it could be worth almost £10 million over three years.

Hester took over from Sir Fred Goodwin in October 2008. Hester asked to be paid the going rate of someone in the private sector and not the public. He did not comment on other top staff, because he needed to talk to the staff about there bonuses, which will happen at the end of next month.

He did however tell the parliament that shareholders “have raised concerns about our ability to keep and motivate the good people.”

To read more on this story go to business timesonline.co.uk.