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The Royal Bank of Scotland is pressing ahead with plans to pay multi-million pound bonuses, despite the launch of a regulatory probe into its lending practices.

The Daily Telegraph reports that sources at RBS said the size of the bonus pool would not be affected by the decision of the Financial Conduct Authority (FCA) to investigate allegations that the bank had deliberately pushed companies into default.

Last week, Ross McEwan, CEO of RBS, said there was 'no evidence' of the claims, made in a report by Lawrence Tomlinson, a small business adviser to Vince Cable, the Business Secretary.

A source said RBS’s bonus plans would not be changed as a result of the allegations.

Weekend reports suggested that RBS, which is 82%-owned by the taxpayer, was planning to pay out a total of £500m in bonuses this year. Last year, the bank paid £607m in annual bonuses, despite reported losses of £5.2bn. The pool would have been higher, but £300m was deducted to pay for fines related to the global Libor-rigging scandal.

To access the complete Daily Telegraph article hit the link below:

RBS to push ahead with bonuses as probe nears

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