Friday, 25 April 2014

RBS plan for 200% bonuses blocked by Treasury

Royal Bank of Scotland has abandoned attempts to pay bonuses twice the size of salaries after being told the move would not be approved.

UKFI, the body that manages the Treasury’s 81% stake in the bank, told RBS it would veto plans for a 2:1 bonus ratio at the next shareholder meeting.

“There will be no rise” while RBS is “still in recovery”, the Treasury said.

While I welcome the fact that RBS has been told no, I’m amazed they had the gall to dare to ask for 200% bonuses less than two months after they announced losses of £8.2bn.

I’d really like to hear the explanation from RBS as to why they feel the 2:1 ratio is justifiable for abject failure; usually you hear the tired old line of it’s to attract the ‘best’ people but if you look at the numbers produced by RBS they’re getting worse so they’ve clearly not got the ‘best’ people.


Despite this they still want to pay them bonuses twice their salary, no wonder RBS went under and don’t look like coming back anytime soon. 

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