Page last updated at 17:37 GMT, Tuesday, 12 January 2010

Treasury Committee


The chief executives of Royal Bank of Scotland (RBS), Northern Rock and the Lloyds Banking group faced questions from the Treasury Committee on 12 January 2010.

RBS chief executive Stephen Hester was quizzed on expected bonus payouts and on his own pay package, worth a potential £9.6m.

Mr Hester said he is the only FTSE 100 chief executive with a 'no reward for failure' clause in his contract, but admitted that even his parents think he earns too much.

He said RBS, which is 84% owned by the taxpayer, had "led the way" on pay reform in some ways.

Mr Hester told the committee that plans to return RBS to private ownership within three to five years were on track.

Northern Rock chief executive Gary Hoffman said the nationalised bank may pay bonuses for 2009, after not doing so in the previous year.

"The vast majority of our staff are in Newcastle and Sunderland and are on salaries of around £20,000 - they are not city bankers," Mr Hoffman said.

Lloyds chief executive Eric Daniels faced a series of questions on the bank's takeover of HBOS - a decision that attracted widespread criticism.

When asked by the committee if he should have offered his resignation, Mr Daniels replied: "I believe the HBOS acquisition by Lloyds will prove to be very good value for all stakeholders."

Treasury committee membership


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