RBS said heading for bust-up over bonuses

Piggy Bank

Love a bust-up.

Royal Bank of Scotland is heading for a political bust-up over moves to pay top bankers bonuses worth twice their salaries.

The Evening Standard reports that the bank, 80% owned by the taxpayer following its 2008 bailout, is expected to revamp its pay policies after the European Union imposed a cap on banker bonuses.

Under the rules, bankers cannot receive a bonus worth more than 100% of their salary. But the cap can be raised to 200% if shareholders vote in favour of a higher limit.

New RBS boss Ross McEwan is set to ask shareholders to approve a motion at this year’s annual meeting allowing the bank to do so. A move then would leave the Treasury with the decision whether or not to back the higher cap. The move would apply to bonuses paid for 2014.

The bank is watching rivals closely to see what it must do to retain high-flyers. But any move requiring the Treasury to approve higher bonuses is likely to be politically difficult.

To access the complete Evening Standard article hit the link below:

RBS faces fury over bid to smash bonus curbs: Bailed-out bank wants rewards that are worth TWICE salaries

Unions anger at RBS as it prepares to slash thousands more jobs


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