Disapproval from some quarters over the Royal Bank of Scotland’s chief executive Stephen Hester large employee benefits seems to have been taken to heart, as he has rejected his bonus.

It was reported last week the senior staff member, who runs the mostly publicly owned bank, was due £963,000 in shares.

Robert Peston, business editor at BBC News, said Mr Hester had succumbed to “enormous political pressure” to turn down the bonus at a time when many Britons are being made redundant or put on pay freezes.

The Labour Party said it would put the issue to a Commons vote over the weekend, after which the chief executive announced he would not take his bonus.

Ed Miliband, leader of the opposition, said the director had “done the right thing”.

“Labour was right to seek a parliamentary vote on this so that the people’s voice could be heard,” he argued.

However, the Daily Telegraph pointed out Mr Hester refusing his staff rewards means the Treasury is out of pocket.

Citing expert estimates, the newspaper said the taxman could lose out on as much as £500,000 it would have made on the bonus.

But Mr Miliband stated this case is not the be all and end all of the issue and more needs to be done to tackle employee benefits some people find excessive.

“The debate about fair executive pay and responsible capitalism is only just beginning,” he claimed. “We need a government that will tax bankers’ bonuses and bring responsibility to the boardroom.”