RBS agrees £9.7 mln CEO pay deal

LONDON (Reuters) - Stephen Hester, the head of part-nationalised lender Royal Bank of Scotland, is to get a pay package potentially worth more than 9.7 million pounds, the company said on Monday.

The maximum payout would include share awards of about 6.4 million pounds achievable only if performance targets, including a near-doubling of RBS' share price to 70 pence, were met.

Chairman Philip Hampton said the package meant Hester's financial interests were linked to those of shareholders.

"Over the last few months we have been consulting with shareholders on the most appropriate way to incentivise and reward RBS's Chief Executive, Stephen Hester," Hampton said in a statement.

"We now have support for a remuneration plan that ensures the majority of Stephen's reward is non cash and based on his performance."

The Unite trade union said the package was inappropriate given recent large-scale job losses at RBS and other banks.

"Unfortunately in the last few months thousands of RBS staff have lost the jobs which gave them just a fraction of Hester's pay," Unite Deputy General Secretary said.

"For these workers and their families the suggestion that the RBS chief executive will be awarded such a bumper pay package will leave a foul taste in their mouths."

RBS has announced almost 12,000 job cuts since the beginning of the year as it slashes costs and scales back its lending activities in an effort to shore up its finances and secure its future.