Thursday 26 February 2015 1:53 am

RBS chief executive Ross McEwan hands back £1m share reward

Royal Bank of Scotland chief executive Ross McEwan will forfeit a £1m portion of his pay packet for the second year in a row.

McEwan, known as the lowest-paid bank boss in the FTSE 100, said he did not want to receive the "role based" incentive often used by major UK banks to get around EU rules limiting bankers' bonuses. The New Zealand-born executive's annual salary is expected to exceed £2.7m, even without the payment.

RBS said in a statement:

Ross McEwan has told the RBS Board he does not intend to take the proceeds from his 2015 role based allowance. Ross does not want this issue to be a distraction from the task of building a great bank for customers and shareholders.

McEwan's decision comes after it was revealed by City AM that RBS' average bonus was to drop from £112,000 to £44,000 in 2015.

RBS posted annual results this morning showing losses had narrowed to £3.5bn in 2014.