Work and Pensions Secretary, Iain Duncan Smith
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Duncan Smith: RBS bonus veto could have caused chaos

The Work and Pensions Secretary, Iain Duncan Smith, has said there could have been "chaos" if ministers had overruled the board of RBS and vetoed a £963,000 share bonus for its boss.

The government has come under pressure to act over Stephen Hester's bonus, as it owns 82% of the bank's shares.

Cabinet Minister Mr Duncan Smith told the BBC "nobody would be happier" than ministers if Mr Hester had declined it.

But it had been up to the RBS board - if they had quit, it would have had a huge impact.

  • 29 Jan 2012
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