RBS chief Stephen Hester said today that even his parents think he earns too much.
Hester made the candid revelation as the Treasury Committee questioned the chief executives of The Royal Bank of Scotland, Lloyds and Northern Rock on remuneration levels and performance.
Despite this Hester defended RBS' pay structure, including his own pay package which is potentially worth £9.6m over three years, the BBC reports.
Hester was keen to stress that due to depreciation in the bank's value his compensation was worth far less than suggested, as it is linked to the bank's share price.
Shares in the bank, which is 84% owned by the taxpayer, have tumbled to 34.7p after suffering a fall of 41% last year and a massive 87% in 2008.
Hester owns shares worth up to £3.4m, but he is not allowed to sell them until 2014, and only then if the bank's share price rises above 70p.
Although Hester reassured the Committee bonuses at the bank will be "the minimum we can get away with" he refused to be drawn on planned levels of pay, saying it would be "irresponsible" to disclose estimated figures.
He said the bank had led the way in reforming how bankers are paid by switching to a share-based bonus scheme.
The committee also heard the bank was on target to return to private ownership, within the previously set time frame of three to five years.
Due to the improving economic outlook, Hester said he did not foresee RBS availing itself of the Government's asset protection scheme, which provides guarantees against any losses on bank assets.
Gary Hoffman, the chief executive of beleaguered Northern Rock, which is now 100% tax-payer owned, said after foregoing bonuses in 2008 the bank will consider an incentive scheme for 2009, but only if targets are met.
He claimed it was not yet clear at what rate bonuses would be paid, but conceded the possibility exists of some bankers receiving bonuses of up to £25,000; the level at which the new 50% tax takes effect.
Lloyds chief executive Eric Daniels refused to rule out further job losses at the bank, and would not comment on the estimated 15,000 jobs which union bosses fear are at stake.
He also faced thorough questioning on the bank's takeover of HBOS last year which has been roundly criticized.
Although Daniels claimed at the time the combined group would benefit from a strong financial position, it later emerged HBOS made a loss of £10.8bn in 2008. The bank is now 43% tax-payer owned.
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