London - The new chief executive of Britain's Royal Bank of Scotland (RBS), in which the government has a majority stake, is in line for a pay package of 9.6 million pounds (15.7 million dollars) if he turns the bank's fortunes around, it was reported Monday.

The UK Financial Investments (UKFI), which controls the government's 72-per-cent stake in RBS, agreed to the arrangements for chief executive Stephen Hester last week.

Hester, who succeeded former disgraced RBS chief Fred Goodwin, will receive the package on condition that he succeeds in raising RBS's share price to 70 pence within three years. It is currently traded at around 37 pence.

Hester is in line for an annual salary of 1.2 million pounds, around 2 million pounds in annual non-cash bonus payments and around 6.4 million pounds of long-term share and stock option awards.

The rewards have staggered commentators following the near-collapse of RBS last October, and its rescue in the government bail-out.

A spokesman for Prime Minister Gordon Brown would not comment Monday on whether the deal had been approved by the government.

"This is a matter for the RBS board... Our objectives in relation to RBS are to ensure that the value of the business grows so we can get the maximum possible return for the taxpayer." (dpa)