RBS said today it had reduced bonuses in its investment banking business to £390m, down 58pc from 2010, and across the bank as a whole, bonuses were £985m, down 21pc from 2010.
The bank has today reported a larger-than-expected loss for 2011 of £2bn, as it was hit by costs inlcuding an £850m provision against PPI mis-selling claims and writedowns on the value of its holding of Greek debt.
Mr Hester said this morning the bank’s bonuses were “pretty good value for the taxpayer” because they were needed to attract staff with the skills to return the bank to profitability.
“If you want an RBS that is mired in the past, a British Leyland, then we should be judged on a different basis,” he said.
The bank would not be able to recruit people with the message “come here, have a harder job and earn less”, he said. “We will not accomplish our goals if that is the message.”