The partly nationalized lender, Royal Bank of Scotland is expected to disclose a pay package for CEO Stephen Hester worth up to 9.6 million pounds after securing back up from UK Financial Investments, which possesses state's 70pc stake in RBS.

It was informed that Hester would collect a 1.2 million pound salary, estimated 2 million pounds in annual non-cash bonus payments, and nearly 6.4 million pounds in long- term share and stock options.

Sources further revealed that Hester's pay package was dependent on targets including total shareholder return and absolute share price performance.

Hester qualifies for the maximum share grant only if RBS share price passed 70 pence. It is worth mentioning here that RBS shares closed on Friday at 37.2 pence.

The new deal is largely in line with executive remuneration at some other UK banks.

For instance, Michael Geoghegan, HSBC chief's total package includes £7.5m in long-term awards on top of a £1.1m salary.

The addition of "no rewards for failure" clause by Hesterin in his contract has set an example for others in the row.