We’ve gone through the pay packages of all FTSE 100 CEOs in the financial sector to help you decide whether Hester’s bonus was really so extravagant. So, should the Hester pestering continue?
1. Michael Spencer, chief executive, ICAP
Total package: £7.6m
Annual salary: £0.36m
Bonus in lieu of the dividend on Bonus share matching plan (BSMP) award: £955,635
Michael Spencer took home a £3.15m bonus for the year ended March 31, 2011. Add to this the £0.9m BSMP bonus awarded, and you might wonder why the fatcat police didn’t feel the need to frisk his take-home too.
2. Stuart Gulliver, group chief executive, HSBC
Total package: £13.3m
Annual salary: £1.25m
Other: A long-term incentive payment equal to six times his salary
HSBC’s head honcho is expected to receive a mammoth £3.75m bonus that is three times his base salary. In light of the bonus hullabaloo of late and the fact that HSBC got a whopping great fine last year for mis-selling, does the public and government think Gulliver should also renounce the bountiful bonus? Funnily enough, we haven’t heard any bear-baiting on this one.
Watch out for the HSBC annual report hitting headlines on 27 February for the latest info.
3. Michael Dobson, chief executive, Schroders
Total package: £3.4m
Annual salary: £0.4m
Other: A cash payment of £58,000 and benefits in kind worth £9,000
Dobson took home a £3m bonus over his £0.4m salary in 2010. Watch out for the annual report coming out on 8 March for his 2011 take-home.
- The debate: Do superstar CEOs justify superstar salaries?
4. Antonio Horta-Osorio, chief executive, Lloyds TSB
Bonus: £2.4m – waived
Total package: £6. 2m
Annual salary: £1.06m
Antonio Horta-Osorio declined a bonus last month after he returned to work following a two month absence due to fatigue. Horta-Osorio took over from JE Daniels as chief executive in January 2011. Daniels took home a bonus worth £1.45m last year on top of his £1m pay deal (a total of £2.57m for Daniels in 2010).
5. Bob Diamond, chief executive, Barclays Bank
Bonus: £900,000 to £2m
Total package: £10m
Annual salary: £1.35m
Other: Shares of up to five times his £1.35m salary
Diamond will definitely not strike gold this year. Why? Barclays performance is slightly down on last year, so his cash bonus ought to be somewhere between £900,000 and £2m – peanuts compared to the £6.5m bonus he took home last year. So will this “£100m banker” waive his bonus this year? Hmmm.
6. Peter Clarke, executive director, Man Group
Bonus: $1,750,000 (£1.1m)
Total package: $2,696,000 (£1.7m)
Annual salary: $925,000 (£0.58m)
Other: Benefits of $21,000 (£13,228)
Clarke’s base salary and bonus is almost three times less than the other bonus bravados. He got a performance cash bonus worth $750,000 (£0.47m) and a performance bonus with mandatory deferral worth $1m (£0.63m).
7. Stephen Hester, chief executive, RBS
Total package: £7.38m
£4.8m long-term incentive plan
£420,000 in pension contributions
Hester was in line to get 3.6 million shares worth £963,000, but declined the bonus after the massive political storm. Hester this week told the BBC that he considered resigning, but chose against it because it would’ve been too “indulgent”.
- Charles Orton-Jones: Why Hester deserves every penny of his bonus
8. Peter Sands, group chief executive, Standard Chartered
Bonus: $0.7m (£0.44m)
Total package: $7,800,000 (£4.9m)
Annual salary: $1,544,000 (£0.97m)
Benefits : $115,000 (£72,487)
Share allocation: $700,000 (£441,107)
Deferred shares: $2,100,000 (£1.3m)
Sands takes home a £0.44m bonus which is far less than his financier peers in the FTSE100. Is that a good or bad thing? We’ll leave it to you to decide.
So what do you think of Hester’s bonus compared with the other FTSE 100 CEOs? Let us know in comments below