Bank boss agrees to defer £3m bonus

ROYAL Bank of Scotland boss Stephen Hester has agreed to defer part of his controversial £9.6 million pay packet after it provoked outrage last week.

The chief executive, who is paid a £1.2 million basic wage, will now wait five years before cashing in shares that could be worth £3.4 million.

The move is an attempt to defuse concern that that Mr Hester was being given incentives to push the company's share price up in a way that was unsustainable.

Peter Montagnon, of the Association of British Insurers, said: "This is a significant and welcome development. Large rewards are fine if real value is created, but it must have a sustainable and long-term focus."