Hester: Bonus cap will chase away economic activity

Stephen Hester
ITV News Economics Editor Richard Edgar speaks to Stephen Hester. Credit: ITV News

RBS chief executive Stephen Hester has warned that a proposed cap on banker bonuses will chase “economic activity ... to where the playing field is more favourable".

On the day the bank announced losses of £5.2 billion, Hester defended his record and justified his bonus.

“We're doing a lot for this country from a very big mess,” he said.

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EU moves to cap bank bonuses

European Union officials last night struck a deal to cap bankers' bonuses at a year's salary. Under the deal some bankers may still earn twice their salary in bonuses if there is explicit approval from shareholders.