'Even mum and dad would think I am overpaid': RBS chief

The Royal Bank of Scotland (RBS) chief executive Stephen Hester admitted that his parents think he m

Speaking before a hearing of the Treasury Select Committee yesterday, he added that his bonus package at the state-controlled bank was currently of no use to him as the banks' shares had failed to rise.

Hester, who faced a barrage of questions from the committee for one and a half hours, said that excessive media criticism about bank bonuses is taking its toll, though he said he understood why the government wants to restrict the practice.

The top managers RBS would like to hire are hesitant to join because they are worried they will have to face harsh criticism over their pay and be judged by different set of rules. This had led to concerns about the bank's ability to hire and motivate good performers, he added.

Hester did not give details about the total size of the bonus cake RBS intends dividing among its investment bankers, saying that a decision on bonuses to the staff will not be taken until the end of February.

When asked about the impact of the new 50 per cent bonus tax on the banks, Hester said he did not believe that the UK financial industry will "disappear overnight."