After a great deal of pressure on Mr Hester and the board of RBS to avoid taking or paying a bonus of just under a million pounds (a bargain) Mr Hester has caved in to the pressure and agreed to forgo the bonus.
I find it odd that Mr Hester should have been awarded a contract under which bonuses are payable in terms where he gets a substantial bonus (a) before he has succeeded in returning RBS into private ownership thereby finishing the task that he undertook when he was appointed and (b) he gets a substantial bonus when the bank he runs is still making heavy losses and where its share price has reduced since he was last awarded the bonus.
It strikes me as an odd contract for the government of the day (it was the last government) to have awarded. Mr Hester is supposed to be a talented manager, and if he is he is entitled to a good salary (his present salary of £1.2 million strikes me as a little over the top) but the bonus terms seem to me to be no more than salary disguised as a bonus.
It is quite right that Mr Hester has taken a haircut, and perhaps there should be more haircuts taken by city gents of this ilk.