RBS boss says bankers pay 'contributed' to financial crisis

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Like its rivals in Britain, the Royal Bank of Scotland has been unable to escape criticism from shareholders over the amount of compensation that bankers are paid.

The New York Times reports that earlier this year, United Kingdom Financial Investments, which oversees the British government’s 81% stake in the bank, forced R.B.S. to drop a proposal to pay bankers bonuses of up to two times their annual salaries.

That came after shareholders at Barclays and other British competitors begrudgingly approved similar pay proposals, which allow those banks to pay the maximum level of bonuses available under European Union rules.

On Wednesday, Philip Hampton, the chairman of the Royal Bank of Scotland, didn’t disagree with concerns raised by shareholders over banker pay, saying that 'the structure of pay and bonuses contributed to the financial crisis'.

In response to a question from a shareholder at the bank’s annual meeting in Edinburgh, Hampton said that compensation in the financial industry 'got out of line with the underlying performance of the business'.

To access the complete New York Times article hit the link below

R.B.S. Chairman Says High Banker Pay Contributed to Financial Crisis

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