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What a Wonderful Job Stephen Hester does

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What a Wonderful Job Stephen Hester does

http://www.bbc.co.uk/news/business-16751691
Quote
Royal Bank of Scotland (RBS) boss Stephen Hester is to receive a bonus of almost £1m.

Worth every penny he gets for his shares Smiley
Having said that I need to go and lie down in a darkened room.....goodnight.
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Re: What a Wonderful Job Stephen Hester does

"Hester's pay reflects the significant contribution he has made towards rebuilding RBS in 2011," UK Financial Investments (UKFI) told BBC business editor Robert Peston.
I thought the most significant contribution was made by the tax payers.
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Re: What a Wonderful Job Stephen Hester does

If the guy's half competent, which there seems to be no debate about, he could have got a HELL of a lot more elsewhere.
Not saying it's right, just pointing out the government's dilemma, he didn't have to take the job on.  Roll eyes
Personally, given the enormouus size of the business "we" own, I don't give a flying monkey's what he's paid (within limits), just as long as he does a good job for us all.  Lips are sealed
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Re: What a Wonderful Job Stephen Hester does

Nah - all the Gov't has to do is call their bluff.  "Hey guys& Gals. Anyone paid more than  £75,000 by the bank is going to get a 30% pay cut and you get to keep your job. If you don't like it - there's the door."
It causes some short term pain and inconvenience, but sets a better foundation for their business.  The money saved can go to re-building their reserves.
Mr Heston can get a bonus, once his bank is in profit.
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Re: What a Wonderful Job Stephen Hester does

Hester is doing a good job at turning RBS round from the basket case he inherited.  He was taken on with a contract which included a bonus deal. The company has to honour his contract although morally I feel he should consider turning the bonus down.
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Re: What a Wonderful Job Stephen Hester does

I don't personally have a problem with someone being paid a bonus in shares. "Shares can go down as well as up"! Being paid a cash bonus is a different matter.
If he manages to turn RBS round in a meaningful way his shares will be worth it; if he doesn't they will drop in value and he'll lose out.
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Re: What a Wonderful Job Stephen Hester does

Partially agree with Artmo:- Stephen Hester is in a very unpopular position, indirectly responsible for over 20,000 lay-offs at RBS, forclosure on thousands of mortguages that shouldn’t have been sold in the first place, tighening up on both business and personal overdrafts, again that shouldn’t be granted in the first place. I think he is doing a very good job at trying to turn a bank around. I wouldn’t like to do it.
I’ve no problem with him being paid a bonus in shares, (remember he cannot ‘cash them in’ until 2014).  He needs a powerful incentive to get RBS back on track.
With his track record he can easily walk away and double his basic pay.
RBS Share price is 27p this morning (down from £20.00 in 2007), be interesting to see what it is come December 2014.
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Re: What a Wonderful Job Stephen Hester does

I entirely agree with you journeys. His bonus is worthless to him at the moment, except he now has a very strong incentive to get it right.
There are tens of thousands of people in the UK who are paid bonuses in the form of shares. What better way to give people a shove in the right direction!
There's a lot of political mis-information out there!
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Re: What a Wonderful Job Stephen Hester does

But what is he getting a bonus for doing that his basic £1.2 million annual salary doesn't cover.
Does a bus driver meet with his supervisor at the end of a shift and be told " you have successfully driven your bus to the terminus and back 6 times today so you will get a bonus" Undecided
That's what he is paid to do.
Does Hester get a bonus for turning up for work every day Roll eyes
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Re: What a Wonderful Job Stephen Hester does

Essentially this...
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Stephen Hester is in a very unpopular position, indirectly responsible for over 20,000 lay-offs at RBS, forclosure on thousands of mortguages that shouldn’t have been sold in the first place, tighening up on both business and personal overdrafts, again that shouldn’t be granted in the first place. I think he is doing a very good job at trying to turn a bank around. I wouldn’t like to do it.

There aren't many people who would relish that kind of existence. Anything for a quiet life.
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Re: What a Wonderful Job Stephen Hester does

Yeah...yeah...I guess so Lips are sealed
Somebody must love him.
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Re: What a Wonderful Job Stephen Hester does

Quote from: Strat
Does a bus driver meet with his supervisor at the end of a shift and be told " you have successfully driven your bus to the terminus and back 6 times today so you will get a bonus"

My bus depot boss doesn't...
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Re: What a Wonderful Job Stephen Hester does

I think you also have to remember that his bonus will bring his earnings (eventually) up to what a certain J Clarkson got last year!
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Re: What a Wonderful Job Stephen Hester does

Quote from: Strat
But what is he getting a bonus for doing that his basic £1.2 million annual salary doesn't cover.

The reality is that his renumeration is a combination of fixed cash payment (salary) and incentivised performance-related payment (shares).
So what is called a "bonus" is really a part of his pay, structured to DIRECTLY ensure that his motivation is EXACTLY the same as ours - i.e. get RBS back on track with a good share value so that it can be sold to benefit us all.
Whether the level is right or not is a different issue.
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Re: What a Wonderful Job Stephen Hester does

Quote from: nozzer
I think you also have to remember that his bonus will bring his earnings (eventually) up to what a certain J Clarkson got last year!

and still well under the earnings of Wossy when he was employed by the BBC
http://www.thisislondon.co.uk/standard/article-23969258-bbc-pays-274-stars-six-figure-salary.do
The BBC has just spent the first item of the news at Hesters RBS bonus with soundbites from various MP's.
Would it not have been more balanced if the BBC had spent as much time questioning the antics of Goodwin and Brown who got us into this mess?
Why do we blame the firefighters rather than the arsonists?