By Simon Packard Feb. 21 (Bloomberg) — Royal Bank of Scotland Group Plc Chief Executive Officer Stephen Hester has decided to forgo any bonus awarded to him for 2009, according to a person familiar with the situation, who declined to be identified before a formal announcement. RBS spokeswoman Linda Harper declined to comment. Hester, 49, is scheduled to release 2009 results for the bank on Feb. 25, the first full-year since he took over as head of the 84 percent state-owned bank in November 2008. Hester joined Edinburgh-based RBS on a package entitling him to as much as 9.74 million pounds ($15 million) if he doubles the bank’s share price. The Sunday Times said today that while RBS will likely report a narrower loss for last year, Hester would be entitled to collect 1.6 million pounds in bonuses. That led U.K. Business Secretary Peter Mandelson to say in a television interview today that such a payment would be premature. “If further down the line, in years to come, he has done well and turned around RBS, he deserves something back for it — and I would be the first to say so, — but not now,” Mandelson said in an interview with BBC Television . Hester’s decision follows that of Barclays Plc Chief Executive John Varley and President Bob Diamond to refuse bonuses for 2009, the second year in a row. In return for a government bailout, RBS accepted that the U.K. Treasury gain oversight of its bonus pool, doubling the number of “high achievers” quitting the company, Hester said in December. Hester has an annual salary of 1.2 million pounds. RBS shares must rise to 70 pence each and outperform peers for Hester to receive the full amount of shares and options in his pay deal with the company, RBS said last June. RBS rose 2.3 percent to 34.5 pence on Feb. 19 in London trading. The stock has climbed 80 percent in the last 12 months, compared with the 89 percent increase in the Bloomberg Europe Banks and Financial Services Index . The bank has a market value of 19.5 billion pounds. To contact the reporter on this story: Simon Packard in London at packard@bloomberg.net
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RBS Chief Hester Is Said to Forgo 2009 Bonus After Bailout From Government
