From the recent reports it was seen that ROYAL Bank of Scotland has given Chief Executive, Stephen Hester shares worth £4.2 million as a new three year bonus plan.

It was noticed that that the bank was an 84% taxpayer bank and gave 8.6m shares which were worth £4.2m. The bonus received by him was equivalent to 350% of his annual salary.

Mr. Hester was informed that after the share price hits 57.5p he would be able to get cash and not bfore that. It was noticed that last month its shares were trading at 58.95p.

It was seen that Nathan Bostock was supervising the running down of RBS's toxic assets and had received 3.4m shares which were worth £1.7m.

"The board intends that an important part of pay for senior people at RBS should reflect longer-term performance and the successful recovery of the group on behalf of all shareholders", said RBS Chairman, Sir Philip Hampton.

It was seen that the news came after it was told by RBS that it would be reducing 2,600 jobs.

It was notified that the issue of Mr. Hester's package had created huge controversy and his bonus was waived in common with the bosses of Barclays and Lloyds. It was told by the HSBC Chief Executive, Michael Geoghegan that he would be donating his to charity.