Royal Bank of Scotland Group (RBS.L) chief executive Stephen Hester has had a pay package worth £7.7 million approved at the bank's annual general meeting.

Philip Hampton, chairman of RBS, said, 'Overall we have tried to strike an appropriate balance between paying people at a level so they are motivated to stay with the bank, and showing restraint to reflect the concerns we have heard.'

The move was backed by UK Financial Investments - the body responsible for managing the government's stake in the bank.

In a statement, UKFI welcomed reforms to the remuneration practices at the bank.

Hampton added, ' We had to change and we have changed. I believe that in the next year or so we will finally prove that RBS has become the opportunity we know it can and must be.'

To receive more relevant articles like this one, why not sign up to our weekly newsletters, click here