In defending his bank's pay structure to a committee of MPs the chief executive of Royal Bank of Scotland (RBS) has admitted that even his parents think he earns too much.
He said that he was offered the "going rate" of £9.6m for his job but claimed that his own pay package was worth next to nothing as the share price of RBS is currently so low.
Shares in the bank have fallen for the past three years, declining 41% last year and 87% in 2008.
He holds shares worth up to £3.4m but will only be allowed to sell them in 2014, should the bank's share price rise above 70p.
- “My parents think I earn too much.” How effective a measure of the appropriateness of remuneration levels do you think this could be?
In my experience, there are a number of subjective views that parents have of their children that do not quite fit with the objective measures of the real world. For example:
ReplyDelete• “You can do anything that you put your mind to”
• “They work you too hard”
• “He’s not good enough for you” (often thought and not said out loud, but you can just tell!!!)
So if my mum told me I earned too much then you can pretty much guarantee that I was earning obscene amounts that would make even Mr Hester’s package look like peanuts.
EBTG