Monday, 22 June 2009

RBS needs to be guided by Hester

This is the the story about Steven Hester being awarded a reasonable sum of money for leading RBS. I don't really see that he is being over payed.

if you run an organisation of 300,000 people then you deserve to get paid a few quid, I don't think he will get much chance to spend it with the hours he will be putting in.

However, I hope he gets the job right; RBS is in a very difficult position with huge amounts of bad loans still on its books. There is no magical way out for RBS and in particular a further collapse in the commercial property market could heavily impact RBS, and therefore the taxpayer.

What is less talked about is Sir Philip Hampton. Am I the only one who remembers this? Sir Philip led a massive rescue of BT because he and the CEO had bust the company. It has never recovered from this debacle and now is rated at just £1 for its shares, as opposed to the £4 they were then.

I hope Hester has the sense to not listen to Sir Phillip too closely....