RBS executive's pay package worth 11 mln stg-paper

LONDON May 11 (Reuters) - The head of global banking and markets at Royal Bank of Scotland (RBS.L), John Hourican, is 11 million pounds ($16.7 million) richer -- at least on paper -- after an award of shares and options, the Daily Telegraph reported.

Hourican was granted 21.3 million shares and 7.4 million options exerciseable at 28.2 pence, the closing share price on April 2, the day before the award was made, the paper said in its Tuesday edition.

In a statement, RBS said the group was barely six months into a five-year turnaround plan that depended on the effective implementation of a new strategy for its Global Banking and Markets business, which Hourican is leading.

"All share awards are entirely hypothetical until and unless he succeeds and RBS succeeds in its core mission," RBSsaid. "'No rewards for failure' means that this award is subject to exacting performance criteria, up to 100 percent clawback, and he won't receive a penny if he doesn't deliver for the group and its shareholders."

Originally worth 6 million pounds, the package has nearly doubled in value thanks to a sharp rally in RBS's share price since then, the Telegraph said.

RBS shares closed at 46.1 pence on Monday, having rallied from lows around 10 pence seen in January.

The shares and options vest in April 2012 but Hourican has until 2019 to take them up, provided he meets undisclosed performance targets, the paper said.

RBS, 70 percent owned by the British government, last week posted a first quarter loss of 44 million pounds as strong growth in its investment banking arm offset the impact of impairment losses and credit market writedowns totalling 5 billion pounds. [ID:nL8233801] (Reporting by David Holmes; Editing by Ted Kerr)