Following the recent controversy of RBS CEO Stephen Hester’s bonus, and his gracious decision to waive it, we thought we’d take a look at his basic salary to see just how much he will struggle without it. Using the salary calculator, the figures reveal exactly how the fat cat’s salary translates into an hourly, daily, weekly, monthly and yearly wage. It also shows how much the government will be able to claw back through income tax and national insurance.
Although the figures won’t be entirely accurate (as they are based on a 37.5 hour working week, and you’d hope Stephen Hester would be expected to work more than this), it gives a clear indication that he won’t be visiting wonga.com for a pay day loan anytime soon.
He deserves it
Whilst to the average worker, a £1 million bonus on top of a £1.2 million salary may seem beyond excessive (compounded by the figures revealed above), it has to be put into context. Stephen Hester is in charge of reviving an organsation comprised of 141,000 employees. Although 84 percent of RBS is now owned by the taxpayer, the real problem lies with the fact when it was bailed out each share was worth 50p. 2011 saw share values fall to a staggering 19p, which in turn represents a loss of £26 billion to the UK government. He now needs to turn around the fortunes of the bank in order for the government to get their money back, or even for them to make a profit on the investment. When you see the amount of responsibility he has on his shoulders, you may begin to see just why he “deserves it” as other bankers put it.
Ask yourself, would you prefer him to receive a salary of £2 million, or a salary of £1m and a performance based bonus of £1m?