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RBS boss 'nearly quit' over bonus

The chief executive of Royal Bank of Scotland Stephen Hester has told ITV News he was "within inches of quitting" during row over his bonus. He also told sixth formers at a school in Streatham in south London that "life is not about money."

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RBS boss: 'Bonuses are incentives to work'

A student has asked the chief executive of Royal Bank of Scotland: 'Can you see a time when the bonus culture recedes?' Mr Hester said:

You see bonuses in every walk of life. Postmen get bonuses! To give someone incentive to do well, is not unusual. I don't think anyone should think bad to link pay to something you want someone to accomplish.

Last key sentence, there must be good linkage. Sometimes those linkages break down, they need to be strengthened. Like it or not, money is one of the things that motivates people.

We should not have a society where we say only people we like can make money. That would be stupid in a society that fails.

Hester: 'Capitalism is still the best system'

A student has asked the RBS boss Stephen Hester if the 2008 crisis showed that free market capitalism is only 'great in theory' and that it does not work as in practice. Mr Hester answered:

The world has tried many systems, so far no one has come up with a better system than market capitalism.

Capitalism is still the best system. Countries are nothing if they don't have wealth. In the UK, let's not spend time blaming people, let's spend our time thinking "how can we get out of it", making our way in the world.

– Stephen Hester, Chief Executive of Royal Bank of Scotland

Hester: 'RBS should never have got into a position where they needed state support'

A sixth former has asked the chief executive of Royal Bank of Scotland if the £45 billion used to bail out RBS, which could have gone on healthcare is worth it.

Stephen Hester replied:

As the bank strengthens and improves, British taxpayers will make money out of us.

But if that is not enough of an answer, my view is that banks like RBS should never have got into the position where they needed state support.

The world banking system is under reform.

[It is] incredibly important that we not only recover RBS and free up money, but change the system.

There are better things to do with money than sitting it in RBS, it should be owned by private taxpayers"

– Stephen Hester, Chief Executive of Royal Bank of Scotland
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