Miliband calls on PM to stop RBS chief getting bonus

Labour leader Ed Miliband has called on the Prime Minister to intervene and stop RBS chief executive Stephen Hester taking his bonus which is expected to be around £1.6m.

The call comes after Miliband promised last week to test the David Cameron’s conviction to take on what the Conservatives have dubbed “crony capitalism”,

Speaking to the BBC, Miliband said: “I don’t think he should be getting his bonus. You know the state is still owning a share in the Royal Bank of Scotland, taxpayers are still, you know, footing the bill for what’s happening at the Royal Bank of Scotland.

“You know if responsibility means anything, I don’t think he should be getting his bonus. And the prime minister, if he’s true to his word, would exercise his responsibility to do something about that.”

In November, Mr Hester told the Treasury select committee he would not pay “a penny more than we need to” in bonuses to staff. The BBC says the bank is set to announce a bonus pool of about £1.3bn. Last year that figure was £950m.

However, The Telegraph says other reports at the weekend suggest investment bankers at RBS are to share a £2.5bn pay pot, taking an average of nearly £140,000 each. The £2.5bn includes all pay and perks and an estimated £500m in bonuses.

Both RBS and Lloyds Banking Group have not paid cash bonuses in excess of £2,000 in the past two years, while both firms have announced a raft of job cuts.

The Government  is expected to unveil a review on executive pay and transparency on Tuesday.