RBS chief Hester to waive £1m bonus

The chief executive of Royal Bank of Scotland Stephen Hester has bowed to mounting public anger and agreed to give up a £1m bonus.

His decision was revealed last night, just hours after it had been announced Labour was to call a Commons vote on his bonus package, the Telegraph reports.

It argued no bonus was justified as the bank had failed to meet its lending targets.

Hester has run RBS since it was rescued by the taxpayer in 2008 but was said to have been concerned he was becoming a "pariah".

City sources told the Telegraph last night that he and members of the bank's board had considered resigning because of the growing anger over his remuneration.

He had been in line for a bonus of shares worth almost £970,000, on top of his £1.2m salary.

George Osborne, the Chancellor, last night welcomed Hester's decision and called for him to remain in his post.

"This is a sensible and welcome decision that enables Stephen Hester to focus on the very important job he has got to do, namely to get back billions of pounds of taxpayers money that was put into RBS."