Stephen Hester braced for pay revolt at insurer RSA

Former RBS chief Stephen Hester (Source: Getty)
Former RBS chief Stephen Hester could be set for a row over his pay packet at insurer RSA, as activist investor Cevian Capital has indicated it may vote against the remuneration deal.

Hester’s package at the FTSE 100 insurer includes provisions for a bonus payment of up to 230 per cent of his £950,000 salary.

But the remuneration committee decided his performance was such that he should receive a payout of 300 per cent of his salary.

This is thought to have angered Cevian, which could use its 10 per cent stake in the firm to vote against the award.

The possible rebellion, first reported by Sky News, follows an era of pressure on Hester during his time at RBS.

He joined the bailed out bank to help turn it around after the financial crisis, and regularly turned down his bonus in the face of pressure from the taxpayer.

“We maintain a regular dialogue with all of our major shareholders and take on board all of their comments and feedback,” RSA told Sky News in a statement.

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