Treasury 'drove out' Hester to cut potential pay-off

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The Treasury has been accused of pushing out Royal Bank of Scotland (RBS) chief executive Stephen Hester to cut down any potential pay-off from the state-backed lender, according to a new book.

The Telegraph reports unnamed Treasury sources in the book were said to have been "keen" to arrange his departure earlier this year in order to save about £2m for which he would have qualified had he stayed in the job until next year. "If Hester had stayed until next year he would probably have got a bonus in the interim, triggering a much higher pay-out in line with the terms of his contract," wrote Iain Martin in his new book, Making it Happen. Hester exited his £1.2m a year job in June. He will not receive any bonus for this year, but netted £1.6m in lieu of notice. He could also be...

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