RBS CEO sees no big change in UK asset plan terms

Royal Bank of Scotland does not expect any major changes to the terms of its participation in Britain's asset protection scheme (APS) and should cement the deal over the summer, its chief executive said.

"It will happen over the summer," RBS CEO Stephen Hester told reporters after speaking at a conference.

Asked if there were likely to be any major changes to the terms set out in February, he said: "I don't think so."

RBS agreed then to insure 325 billion pounds' worth of toxic assets and risky loans under the asset protection scheme. Lloyds Banking Group is also putting assets into the APS, but final terms of the complex deal have not yet been agreed for either bank.

At the same conference the head of the body handling the British government's stake in several banks, including a 70 percent holding in RBS, said he was "very comfortable" with a pay package for Hester potentially worth more than 9.7 million pounds, which has come under fire from some politicians and investors.

"The key point about it is that his reward is very highly geared to the return the taxpayer will make on his investment," John Kingman, CEO of UK Financial Investments, said on a panel at the London Business School conference.

"I also think we have a very strong interest in being able to retain and recruit high quality people. We need serious people to run these banks.

"We could pay civil service salaries but I don't think that would be a sensible gamble to take," Kingman said.

Hester also acknowledged the issue. "We're all trying to re-establish points of navigation in the financial world. The responsibility I have is not to hide," he said.