ROYAL Bank of Scotland has indicated that it is likely to cut its chief executive’s pension entitlement next year following an outcry from small-investor group ShareSoc.

Ross McEwan, who has led the bank since 2013, currently receives employer pension contributions worth 35 per cent of his £1 million base salary, something ShareSoc chairman Mark Northway has said is “nonsense”.

However, sources close to the bank noted that RBS’s pay policy is already expected to come up for review at its 2020 AGM, when senior management’s pension entitlement is likely to be cut.

It comes in the wake of Katie Murray, who took over as chief financial officer at the beginning of this year, being awarded pension contributions equal to just 10% of salary.

This in line with what the bank’s other employees are entitled to.

Like Mr McEwan, Ms Murray’s predecessor Ewen Stevenson, who has moved to a similar role at HSBC, received employer pension contributions equal to 35% of his base salary of £600,000.

It is not yet clear how long Mr McEwan will remain at RBS following the 2020 AGM, with the 61-year-old New Zealander expected to hand over the reins in the near future.

Alison Rose, who currently leads RBS’s commercial and private banking operations, has been widely tipped to replace him when he does choose to go.