The row over bank bonuses has continued relentlessly in the UK for five years, starting with the 2008 bonus round in the initial aftermath of the credit crunch. But the successful campaign to force Royal Bank of Scotland boss Stephen Hester to give up the £1m share award to which he was contractually entitled takes the row to a new level. A Rubicon may have been crossed: This move may have real world consequences.

The first consequence is likely to be felt at the bank itself. Hester is unlikely to storm off in protest, at least not just yet. But the treatment of Hester - the man brought in to rescue RBS appeared in danger of becoming almost as vilified as his predecessor, Sir Fred Goodwin - confirms that RBS is now a political football. The bonus row follows Chancellor of the Exchequer George Osborne's decision in December to claim credit for the closure of parts of RBS's investment banking division. Any impression that the government is now calling the shots is sure to make it harder to retain and recruit high quality staff. To the extent that hits performance, it will also hit the value of the bank.