Hester bonus to be less than £1m, say reports

Royal Bank of Scotland chief executive Stephen Hester is set receive an annual bonus of between £800,000 and £950,000.

According to Sky News, RBS directors agreed the remuneration package yesterday with the announcement becoming public as soon as tomorrow.

The bonus will consist of approximately 3 million RBS shares and will be deferred for three years.

Hester received an annual bonus of just over £2m in 2011. The deal is seen as a compromise from the initial bonus figure, thought to be in the region of £1.6m.

Earlier this week, Labour leader Ed Miliband called on the Prime Minister to intervene and stop RBS chief executive Stephen Hester taking his bonus.