By Marcus Leach

Stephen Hester, chief executive for Royal Bank of Scotland (RBS), has been handed a pay package worth £7.7m for 2010.

Despite the fact RBS made a loss in excess of £1bn last year they have opted to reward Hester with a substantial package that includes £6.5m worth of shares, although these will not be available for three years, and two thirds of them rely on Hester meeting management targets.

Chief financial officer Bruce van Saun is also set to receive a pay and shares package worth a total of £4.9m.