Hester's pay is under the microscope at RBS

By DAILY MAIL REPORTER
Updated: 04:37 EST, 25 March 2009

Stephen Hester is the new boss at RBS

Royal Bank of Scotland is facing a new dispute over executive pay.

Private investors are being urged to protest at the award of 10.4million shares to new chief executive Stephen Hester, who has taken over from disgraced boss Sir Fred Goodwin.

Shareholder lobby group PIRC objects to the award because they are not tied to the bank's performance.

Hester would not get the shares if he was kicked out for failing in his job.

But he would receive them if the bank does badly and he remains in the post.

PIRC is recommending that shareholders vote against the RBS remuneration report.

The action would be no more than symbolic as the government owns the vast majority of RBS.

Last night, RBS defended the Hester share award as it compensated him for options he gave up when he moved to the bank from his previous employer, British Land.