THE chief executive of the Royal Bank of Scotland has broken his silence to admit the media spotlight caused by the rows over Fred Goodwin and bonuses had been uncomfortable but he insisted the best way to hit back at the bank's critics was to prove them wrong.
Following the removal of his predecessor's knighthood and his decision to forgo his £1 million bonus in the wake of public and political pressure, Stephen Hester wrote a letter to the bank's staff acknowledging that, in the current difficult economic climate, a "broader perspective" was needed.
Sir Philip Hampton, the RBS chairman, also gave up a £1.4m bonus he was due, admitting banker pay had been "high for too long".
Describing the media spotlight on RBS in the last few days as "discomforting to say the least", Mr Hester said that, despite the focus being placed on either himself or Mr Goodwin, many staff had felt the "broader impact on RBS of the uncertainty and criticism".
In a note aimed at putting the recent controversy into perspective, the bank chief reassured them RBS was full of good people, supported by millions of customers, and had a good future to look forward to.
"We can't control the outside world; whether the economic environment or the political one. That's not unique to us. But if ever something has been proven over our last three years of history, it's this – we can successfully overcome great obstacles," said Mr Hester.
He continued: "There is no doubt our position in the spotlight makes the job harder and we can't know how much damage that will do to RBS or the interests of those we serve, whether as customers or shareholders.
"But the best way to deal with it is to prove the critics wrong. To be purposeful, calm, and do our jobs to the best of our ability and have confidence and pride in what we have done and what we can accomplish."
The RBS chief explained that the Scottish bank – subject of the world's biggest bailout at £45.5 billion and now 82%-owned by the taxpayer – was still making a loss, which "inevitably gives us communication challenges".
Yet Mr Hester argued the losses ironically were a measure of its successful recovery with more than £33bn in profits generated during the last three years.
He insisted RBS was ahead of schedule in its bid to clean up its act and, as a result, was now a "much safer company".
He noted: "None of us can know what the future holds but what I do know is that this is a great company with great people making progress in the face of a difficult inheritance.
"We should try to be strong, to do our jobs, to deal with facts not fears."
As all eyes this Friday will turn to Barclays and the expected announcement that its chief executive Bob Diamond is in line for a multimillion- pound bonus, Mr Hester urged RBS staff to keep a broader perspective.
Thanking them for their messages of support, he added: "Many people within RBS and in the wider economies we serve are facing uncertainties around jobs, earnings, housing values and many other things.
"None of us, individually or RBS as a whole, exists in a vacuum. We do need to keep in mind that bigger picture."
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