Boris: UK Government shouldn't block RBS bonus plans

Boris Johnson

Boris Johnson has entered the row over pay at The Royal Bank of Scotland and said that the Government should not block any future plans by the bank to pay bonuses up to two-times salaries.

Speaking to The Telegraph at the World Economic Forum, the Mayor of London said that it was up to the board of RBS to decide on the issue and that the bank had to compete for global talent.

The newspaper reports that his intervention comes after Ed Miliband, the Leader of the Opposition, demanded last week that the Government block any bonuses above the present European Union cap of one times salary.

All the major banks in the UK, including Barclays and Standard Chartered, are expected to ask for the cap to be raised to two-times salary. The EU pay rules allow the change as long as investors agree. RBS has yet to declare whether it is going to ask for the change.

As the bank is more than 80% owned by the Government, George Osborne would have to agree to the move. David Cameron has already said that he wants to see the overall amount paid in remuneration fall at RBS and that there should be no cash bonuses over £2,000.

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

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image: © BackBoris2012

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