* Unite 'appalled' by size of pay package* Shareholders say price target could encourage risk-taking* City institutions believe RBS should reconsider dealA pay deal for Stephen Hester, the Royal Bank of Scotland's chief executive, which could reach £15m provoked anger from unions, shareholders and politicians last night as the state-controlled bank reignited the public furore over boardroom pay.RBS was accused of missing an opportunity to set an example and put a lid on bankers' pay following the £20bn taxpayer bailout of the Edinburgh-based bank in which the government has a 70% stake.City institutional investors believe the bank should reconsider Hester's pay package which comprises cash, shares, options, credit notes and debt and will pay out its maximum amount in three years if the taxpayer makes an estimated £8bn profit on its shareholding in the bank.
* Shareholders say price target could encourage risk-taking
* City institutions believe RBS should reconsider deal
A pay deal for Stephen Hester, the Royal Bank of Scotland's chief executive, which could reach £15m provoked anger from unions, shareholders and politicians last night as the state-controlled bank reignited the public furore over boardroom pay.
RBS was accused of missing an opportunity to set an example and put a lid on bankers' pay following the £20bn taxpayer bailout of the Edinburgh-based bank in which the government has a 70% stake.
City institutional investors believe the bank should reconsider Hester's pay package which comprises cash, shares, options, credit notes and debt and will pay out its maximum amount in three years if the taxpayer makes an estimated £8bn profit on its shareholding in the bank.
Government should not care, but do a very simple thing: have a high enough marginal tax rate to make any kind of huge package mostly useless. In the long run, we're all dead. John Maynard Keynes
