RBS boss could net £8m bonus in future

The chief executive of bailed-out lender Ulster Bank’s owners, Royal Bank of Scotland, already under political pressure to give back a £1 million (€1.2m) bonus for 2011, could get eight times as much in future under his current contract.

RBS chief executive Stephen Hester could theoretically receive an £8m bonus under a long-term incentive plan that gives him a maximum of 375% of his annual £1.2m salary, along with other share plans in place, based on RBS’ recent stock price of 28 pence.

RBS, 83% owned by the British government after a state bailout during the 2008 credit crisis, said this week that Mr Hester’s 2012 share award and long-term incentive plan would continue in line with a policy set out in 2010.