RBS director defends awarding Hester bonus

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The Royal Bank of Scotland (RBS) director responsible for remuneration has defended awarding chief executive Stephen Hester a bonus worth £963,000.

The boss of the 83% state-owned bank was forced to waive the bonus last month following a public outcry and pressure from politicians. However, in an interview with the Financial Times, Penny Hughes, a non-executive director and chair of RBS's remuneration committee, said Hester deserved the bonus as he was responsible for the "world's biggest corporate turnround". The bank made pre-tax profits of £2bn in the three months to 30 September, compared to a £1.6bn loss in the same period in 2010. Hughes said: "It's very clear what the market rates for various different jobs are. "We ...

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