RBS to revamp key unit

ROYAL Bank of Scotland (RBS) is to revamp the management of its global banking & markets investment bank following deputy chief executive Marco Mazzucchelli’s decision to step down after a skiing accident.

Mazzucchelli will remain with RBS but will spend more time on “client-facing” roles, according to a source.

The reshuffle comes as a bumper pay deal for chief executive Stephen Hester was voted through yesterday despite anger against bankers’ pay.

Hester’s £7.7m long-term deal, unveiled last month, was approved by 99.2 per cent of shareholders who voted at the annual general meeting, helped by the backing of UKFI, the state body that manages Britain’s 83 per cent holding in the bank.

However, RBS chairman Philip Hampton acknowledged salaries were often hard to justify. “The level of pay that exists in that industry – it”s very hard to justify objectively,” he said.