RBS boss forgos £1.6m bonus to make way for investment bankers’ rewards

RBS chief executive Stephen Hester will not take his £1.6m bonus for 2009, it has emerged.

The news follows the decision by Barclay’s chief executive John Varley and Bob Diamond, head of the investment banking arm of the bank, to decline their bonuses last week, despite the bank’s record profits.

Hester’s decision will pave the way for RBS to pay just over £1.3bn in bonuses to its investment banking staff, according to Sky News, which broke the story.

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However, it will pile pressure on Eric Daniels, Lloyds’ chief executive, who has yet to make any declaration about his bonus plans, the Financial Times has said.

The government has a 70% shareholding in RBS, and owns 41% of Lloyds.