Missed financial targets at RSA wipe a third off of Stephen Hester’s bonus
RSA chief executive Stephen Hester has been granted 68 per cent of his potential bonus, with missed financial targets mostly responsible for the loss of nearly one third.
Hester’s £939,000 bonus took his total remuneration for 2014 to £2.12m, according to the company’s annual report released yesterday.
Hester became embroiled in several pay scandals as chief executive of RBS, where he was forced to decline a near £1m bonus in 2012 due to public pressure.
His bonus from the insurance giant was dented mostly by the group’s missed financial targets last year – they were responsible for just over one quarter of the bonus being knocked off.
The group’s underlying return on tangible equity was 9.7 per cent compared to a target of 10.8 per cent. Profit before tax fell short of its £270m goal reaching just £247m. However, he received the highest possible remuneration for his “personal scorecard”, which was judged on “efforts driving company recapitalisation, new strategy and operational plans, stakeholder engagement, operational delivery of controllable items and executive team development.”
The third element of the bonus – which Hester also scored highly on – was the “business review” which involved the group’s credit rating, expenses and capital adequacy.