RBS in big bonus blow

No Pot Of Gold

Fears grow that the bank will be uncompetitive when it comes to pay.

Reuters reports that the body responsible for managing Britain's stake in the Royal Bank of Scotland will block any resolution proposing the lender pays out bonuses of up to 200% of fixed pay, the bank said on Friday.

Under a new European Union rule, which will apply to awards handed out from early 2015, bankers' bonuses can be no higher than fixed pay, or twice that level with shareholder approval.

RBS said all its major UK and European competitors had indicated that they would seek approval to award bonuses of up to 200 percent of salaries, which was 'emerging as the sector norm' and something its shareholders had understood as the 'best commercial solution' for the bank.

The bank said that 'this outcome creates a commercial and prudential risk which it must try to mitigate'.

Hit the link below to access the complete Reuters article:

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