Stephen Hester, the CEO of Royal Bank of Scotland, is to undertake a moral overhaul of the state-backed institution, calling on all 150,000 of his employees to consider 'obsessively' the external impact of everything they do in order to avoid repeating past mistakes.
The Sunday Telegraph reports that Hester, whose firm is expected to receive a Libor-fixing related fine of several hundred million pounds early in the new year, will ask RBS’s staff to place the “outside world” at the centre of all transactions.
In the meantime, the newspaper also reports that Barclays is to rewrite its rules on pay and multi-million pound bonuses in an attempt to drive down costs and stop criticisms that the bank incentivised its executives to take the wrong type of risks.
The Sunday Telegraph has revealed that Hector Sants, the former chief executive of the Financial Services Authority, has been asked to play a key role in writing the new pay strategy, which will be revealed at the bank’s strategic review on February 12.
image: © Sergey Gabdurakhmanov