Stephen Hester, the new boss parachuted into Royal Bank of Scotland, has been hired on a salary of £1.2m and been awarded shares worth more than £6m to overhaul the bank, The Guardian reports.
Hester, who is being given 10.4m shares, yesterday hinted the beleaguered bank was on course to make its first full-year loss. The replacement for the ousted Sir Fred Goodwin is working on a new strategy that is likely to undo much of the expansion achieved by his predecessor.
His pay package was outlined in a prospectus accompanying the bank's record-breaking £20bn fundraising that could leave the taxpayer owning 60% of the Edinburgh-based bank.
It shows his salary of £1.2m - a 50% rise on his pay as British Land chief executive - and the award of shares intended to buy him out of British Land schemes. The shares are being awarded at 65p - the price at which the government is backing the fundraising - giving them a value of £6.7m.
ANDY HORNBY, THE outgoing HBOS chief executive whose failed strategy nearly bust the bank, is to be paid £60,000 a month as a consultant to help integrate the embattled lender with rival Lloyds TSB, according to The Telegraph.
Mr Hornby stepped down after the Government had to rescue HBOS with £11.5bn of taxpayer’s money. He volunteered to forgo any pay-off, costing him about £1m, on top of the £9m he has lost on the value of his HBOS shares.
However, the lucrative consultancy post will help offset the losses as he looks for a new job.
SENIOR UBS EXECUTIVES and board members will be forced to hand back Sfr60m (£32m) in bonuses paid out last year, the Swiss bank said today, The Guardian also reports.
The bank, the worst European casualty of the 14-month-old financial crisis, writing down $50bn (£31bn), will also pay out no bonuses this year to Peter Kurer, its chairman, and other executives.
A spokesman in Zurich said today UBS will give details of planned changes to its remuneration scheme on November 14 before it is put to shareholders at an extraordinary meeting on November 27.
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