RBS directors: Pay bonus or we quit
The directors of the Royal Bank of Scotland are threatening to quit if the Treasury blocks plans to pay out an estimated £1.5 billion in bonuses to staff in its investment arm, it is reported.
The directors of RBS have threatened to quit in a row over paying bonuses
The directors of the Royal Bank of Scotland are threatening to quit if the Treasury blocks plans to pay out an estimated £1.5 billion in bonuses to staff in its investment arm, it is reported.
RBS board members were reportedly advised to resign if they lose the power to run the largely state-owned bank for the benefit of shareholders.
Chancellor Alistair Darling signalled he is prepared to veto the size of the RBS bonus pool, which is about 50% bigger than last year.
News of the row came as City minister Lord Myners warned that at least 5,000 UK bankers will earn more than £1 million this year unless action is taken. He called on major shareholding institutions to tackle the issue immediately before it was too late.
As part of the terms of its latest deal to insure bad debts, the Government wants to dictate both the "quantum and shape" of the payouts at RBS for 2009.
The bank, which will be 84% state-owned under the terms of the Asset Protection Scheme (APS), will now have to agree the size of this year's payouts with UK Financial Investments (UKFI), the body set up to manage the public stakes in banks.
A Treasury spokesman said: "As a major shareholder, UKFI needs to be satisfied that RBS's approach to remuneration is in keeping with the FSA's code of practice. We expect other institutional shareholders will be equally concerned to ensure remuneration practices do not pose a risk to the stability of the organisation."
Lord Myners said at question time on Wednesday that there was "precious little evidence" that people at the top of banks appreciated "the concern about these extraordinary levels of income".
He told the Lords: "I would estimate that at least 5,000 people working in the banking industry in the UK will receive, if nothing is done, remuneration in excess of £1 million this year. I think the real responsibility here must lie with the shareholders."
TUC general secretary Brendan Barber said: "The banks nearly brought down the whole economy only a year ago. Few would have survived without Government or Bank of England help. Yet now we learn that they are back to the bad old days when they confused their telephone numbers with what they were paid."
I say Bye Bye and don't let the door hit you on the way out!
The directors of the Royal Bank of Scotland are threatening to quit if the Treasury blocks plans to pay out an estimated £1.5 billion in bonuses to staff in its investment arm, it is reported.
The directors of RBS have threatened to quit in a row over paying bonuses
The directors of the Royal Bank of Scotland are threatening to quit if the Treasury blocks plans to pay out an estimated £1.5 billion in bonuses to staff in its investment arm, it is reported.
RBS board members were reportedly advised to resign if they lose the power to run the largely state-owned bank for the benefit of shareholders.
Chancellor Alistair Darling signalled he is prepared to veto the size of the RBS bonus pool, which is about 50% bigger than last year.
News of the row came as City minister Lord Myners warned that at least 5,000 UK bankers will earn more than £1 million this year unless action is taken. He called on major shareholding institutions to tackle the issue immediately before it was too late.
As part of the terms of its latest deal to insure bad debts, the Government wants to dictate both the "quantum and shape" of the payouts at RBS for 2009.
The bank, which will be 84% state-owned under the terms of the Asset Protection Scheme (APS), will now have to agree the size of this year's payouts with UK Financial Investments (UKFI), the body set up to manage the public stakes in banks.
A Treasury spokesman said: "As a major shareholder, UKFI needs to be satisfied that RBS's approach to remuneration is in keeping with the FSA's code of practice. We expect other institutional shareholders will be equally concerned to ensure remuneration practices do not pose a risk to the stability of the organisation."
Lord Myners said at question time on Wednesday that there was "precious little evidence" that people at the top of banks appreciated "the concern about these extraordinary levels of income".
He told the Lords: "I would estimate that at least 5,000 people working in the banking industry in the UK will receive, if nothing is done, remuneration in excess of £1 million this year. I think the real responsibility here must lie with the shareholders."
TUC general secretary Brendan Barber said: "The banks nearly brought down the whole economy only a year ago. Few would have survived without Government or Bank of England help. Yet now we learn that they are back to the bad old days when they confused their telephone numbers with what they were paid."
I say Bye Bye and don't let the door hit you on the way out!
