£9.6m pay deal for new RBS chief

22nd Jun 2009 07:35

Royal Bank of Scotland chief executive Stephen Hester is set to be awarded a £9.6m pay and incentives package.The terms have already been agreed by UK Financial Investments, the body that runs the UK government's 70% stake in RBS, the FT reported this morning.Hester will earn an annual salary of £1.2m, receive a projected £2m of annual non-cash bonus payments and up to a futher £6.4m through share awards linked to performance. The maximum share grant would only be achievable if the RBS share price passed a threshold of 70p, today's reports said, with trigger points up to that level also based on the price performance of the shares.The package has been designed to align Hester's pay with the Treasury's plan to eventually sell off its RBS stake at a profit, today's report added.