LONDON: Royal Bank of Scotland Group Plc said Chief Executive Officer Stephen Hester will hold shares promised under a 9.74 million-pound ($16 million) pay plan for an extra two years, a move hailed as "significant" by a trade group after the package received criticism from a union last week.

RBS spokeswoman Linda Harper said that Hester will hold the shares. Britain's biggest government-controlled bank gave Hester the package of shares and options, which will pay the maximum amount if the bank's stock rises to 70 pence and outperforms its peers.

The move is "significant and welcome", the Association of British Insurers, which had previously proposed deferring the award, said in an e-mailed statement.