Royal Bank of Scotland's chief executive Stephen Hester was indicating towards huge bonuses when he assured his staff that the bank would pay them fairly and competitively. 

Stephen Hester said banks executives who get share bonuses would be provided with a chance to cash them out as soon as they are presented.

It may be noted here that RBS staff were angry over the terms which prevented most bonus payments for three years.

Any executive earning more than 39,000 pounds would receive 50 per cent of their bonuses in 2010 in the form of shares and the remaining deferred over the following two years.

But according to the bank if an executive receives a bonus of 3 million pounds in the running year, he will be able to change shares worth 1 million as early as June 2010, while the rest will be released in June 2011 and 2012.

But, the Treasury has described the development as ‘utterly outrageous'.

In addition, UKFI, which handles the taxpayer stakes in the bailed out banks, said Stephen Hester's pay had been linked to lending commitments that the Treasury has demanded.