After much speculation and political pressure, Royal Bank of Scotland boss, Stephen Hester has rejected his £1 Million bonus.
The Government have welcomed this payment refusal of a shares based bonus and Hester has received a lot of flack, due to the bonus coming from tax payers.
It is a difficult decision to make, as the board of the Royal Bank of Scotland believe that Hester was due the bonus, due to the fact he had made RBS a less risky business in the economic crisis.
This news comes after recent acclaim that Royal Bank of Scotland needed to axe 3500 jobs which would remove 11,000 people from employment with the bank. This reduces the number of staff to 24,000, the same as before the recession hit.
The bonus that Hester would receive would be 46 times the average salary of a UK worker.
You can see why people get cross about such things, if we were in a healthier situation it may be possible for this kind of money to be dished out. Don’t forget, this is purely a bonus, who knows that Hester’s actual salary is!
What would you do? most people would jump at the chance of a bonus, but many people’s bonus scheme would reach nowhere near the £1 Million amount.
Compared to the Barclay’s bank bonus, Hester’s bonus seems minimal. There are two schools of though on the process of giving huge bonus offerings to corporate bosses, but at the end of the day, its seems Hester has done right by the country and waived his bonus payment, this may possibly set the standard for other large bank bosses and company bosses to follow suit. Imagine how much money could be saved by simply 2 or 3 people refusing their bonus payouts.
The team at Select Factoring think that Hester’s anti-bonus decision is a noble one.