Royal Bank of Scotland is planning to make a fresh attempt to follow Britain’s other high street banks and introduce an incentive-based allowance for key employees to compensate them for the loss of bonuses.
The Daily Telegraph reports that the board, headed by Sir Philip Hampton, is understood to be dismayed at the prospect of losing more experienced bankers and feels that if taxpayer-backed RBS is to remain 'within touching distance' of the market pay, it needs to maintain incentive pay.
But with UK Financial Investments, the organisation responsible for handling the taxpayers’ 81% stake in the company, forcing RBS to abandon its original scheme to award share incentives equivalent to two-times salary, the board is facing difficulties in winning support.
Only a small number of senior RBS executives have been earmarked to benefit from the new fixed allowance system largely paid in shares over a five-year period.
To access the complete Daily Telegraph article hit the link below: