February, 23, 2010

A former Easingwold schoolboy who went on to become chief executive of one of the UK’s biggest banks has said he will not take his £1.6 million bonus.Stephen Hester, 49, head of the Royal Bank of Scotland (RBS), turned down the reward this weekend amid public fury over bonuses within banks which were bailed out the Government. The bank is expected to announce losses of almost £5 billion soon. Mr Hester took over as chief executive of RBS in the aftermath of the banking crash in late 2008 and was believed to be on a potential £9.7 million pay and bonus package.

On Sunday, the bank was criticised by business secretary Lord Mandelson during a BBC television interview when he said it was an inappropriate time for Mr Hester to take a bonus.Lord Mandelson said: “What I would say to RBS and to their chief executive Stephen Hester is this: if further down the line, in years to come, he has done well and he has turned around RBS, he deserves something back for it, I would be the first to say so – but not now.”Mr Hester was brought in by the Government to turn round the fortunes and the reputation of the RBS following the departure of former chief Sir Fred Goodwin.

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