RBS chief in line for £1.2m bonus

The government is preparing to sanction a £1m-plus bonus for Royal Bank of Scotland (RBS) chief executive Stephen Hester.

Although the payout is likely to be less than those enjoyed by other banking bosses, it is almost certain to attract criticism after RBS's shares almost halved last year, reported the Telegraph.

Senior government sources said Hester could receive as much as £1.2m in shares as recognition for his work selling off assets and reducing the bank's balance sheet.

The potential move comes amid a large public backlash against excessive banker bonuses.

A final decision on bonuses for Hester and other senior employees is unlikely to be made until the RBS board meets before it announces results on 23 February.