RBS CEO to hold share award for extra 2 years

LONDON, July 1 (Reuters) - Royal Bank of Scotland (RBS.L) Chief Executive Stephen Hester has pledged to keep any shares he receives under the medium-term share award of a controversial 9.7 million pound pay package for an extra two years.

The chairman of RBS's remuneration committee has written to the Association of British Insurers to say Hester will retain any shares he receives from this year's medium-term performance plan for two years beyond the vesting date. The ABI welcomed the move.

Hester is to get a pay package potentially worth 9.7 million pounds ($16 million), RBS said last week.

It includes 3.4 million pounds under a medium-term share award if RBS shares hit 70 pence, which would be paid in respect of 2009 but only claimable after three years.

(Reporting by Steve Slater)