Stephen Hester, chief executive of Royal Bank of Scotland (RBS), has been forced out of his job as the British government prepares the ground to privatize the bank next year.
Hester would step down at the end of this year with a payoff of at least £1.6 million – and possibly up to £5.6 million – as British Chancellor George Osborne announced plans to sell the bailed-out bankâ„¢s 82 percent stake in the lender.
Å“Having brought RBS back from the brink, now is the time to move on from the rescue phase,” the Chancellor said.
Osborne is expected to announce further details of the bankâ„¢s privatisation in a speech next week, media reports say.
Last month, The International Monetary Fund (IMF) urged the British government to sell taxpayer-held shares in RBS and Lloyds following their bail-out in the financial crisis.
The suggestion is reportedly meant to trigger growth in a bid to deal with the British economic woes.
RBS was handed a £390 million fine for “widespread misconduct” in rigging the London Interbank Offered Rate (Libor) earlier in February.
MOS/HE
This article originally appeared on: Press TV