RBS chief to get £900,000 bonus

HAMISH_MCTAVISH

Graham_Devon wrote: »

This wasn't contractual at all. If it was, this wouldn't be happening...

Ahem....

The boss of a taxpayer-funded bank has been awarded a bonus worth £963,000, around 60% of his entitlement, following political pressure to limit the payout.

It said the reduction on last year's payout "reflects those areas where financial and business objectives have not been fully met" and a decline in the share price.

http://www.google.com/hostednews/ukpress/article/ALeqM5jZTl3irApOrWbgCm7XCNOhMfsEiQ?docId=N0151101327587428903A

Crikey, the guy is shafted on what he's entitled to as part of his package, after Cameron exerts political pressure to say a 7 figure payment would be unacceptable, and you still want to moan?

Get real...

vax2002

I think we should demand capitalism .
If the bank goes bust, tough, someone else will set up another company doing the same.
It is what happens to the rest of us.

MrRee_2

It always makes me laugh ... this thing called jealousy.

I work with people earning £1,000 a day - some £2,000 a day ......... why do they get such good pay, I hear you ask?

Answer is that they are the best at what they do - and that is what they demand to get paid ... we pay it.

Now, hands up here, who think they could do the job as boss of RBS? Hands down the clowns amongst us ........ you couldn't do it, or you WOULD be doing it!

And, now, hands up who would take £2million if that is what someone wanted to pay us for doing what we do? ..................... WOW!! That's 1,000's of you!!

Now, hands up who thinks this £2million should NOT be paid to the boss of RBS ..... OH, I see - the very same people who would take it in the question above ...........

Interesting dynamic there!

HAMISH_MCTAVISH

Graham_Devon wrote: »

I said there are others that can do it. Which there obviously are.

Of course....

Like Lloyd Blankfein, CEO of Goldman Sachs, pay package last year $14.1 million.

Or Bob Diamond, CEO of Barclays, pay package last year £7.5 million.

Or Stuart Gulliver, CEO of HSBC, pay package £13.3 million.

etc....

Now I don't know about you Graham, but I'd much prefer our investment in RBS and Lloyds was managed by the best talent we can find, not the cheapest....

In fact I'd rather we hired a Diamond, or a Blankfein, or a Gulliver, and paid them the going rate. Even though that would be many times more than the current CEO is getting.

Graham_Devon

I like this bit...

The man is worth so much to the company, that his previous bonuses paid in shares are now worthless, due to the declining share price.

The bank also stressed that a bonus Hester had been awarded when he joined shortly after the £45bn taxpayer bailout in 2008 – worth £6.4m at the time – and which would have paid out this year, was now worthless.

The row is only going to get bigger...

Lord Oakeshott, the Liberal Democrat peer who resigned as a Treasury spokesman for his party a year ago over the lax treatment of the financial sector by the coalition, said that the bank should realise that any bonus for Hester this year was "utterly unacceptable". Oakeshott is concerned about the slow flow of lending to small businesses, which the major banks, including RBS, committed to last year under the Project Merlin agreement. "The bonus would be a reward for RBS's failure to lend to small business which was the key target," Oakeshott said.

The RBS chairman will also receive none of his 2009 bonus, as the performance conditions have not been met....that is the performance conditions under the man now getting 900k for performance.

vax2002

I think if any of us were put in charge of RBS we would be hard pushed to loose £744 000,000 in six months.
Thats some going !
I may not be a financial wizard worthy of a 900k bonus, but I could have told them that investing tax payers money in Greek bonds was a sure fire way to loose the lot !
Can I have a bonus please....
Thats the talent you speak of ?
http://www.dailymail.co.uk/news/article-2022709/RBS-posts-losses-794m-failure-taxpayer-backed-banks.html

Thrugelmir

Graham_Devon wrote: »

And that we should keep him and pay him bonuses to stay?

Simply put. Yes.

He's a talented guy that has taken on the challenge of rebuilding RBS. If he's successful he will save us all a heck of a lot of money.

No doubt he could get another job tomorrow.

Thrugelmir

vax2002 wrote: »

I think if any of us were put in charge of RBS we would be hard pushed to loose £744 000,000 in six months.
Thats some going !

Could you have reduced the size of RBS's balance sheet from 2.2 trillion to 1.4 trillion, and axed 33,000 jobs in the process. Yet managed to keep the bank operational.

At 1.4 trillion that's still the size of the output of the entire UK economy.

misskool

Graham_Devon wrote: »

Who on earth stated I think I could do it?

I said there are others that can do it. Which there obviously are.

Obviously. They would probably want paying the same amount though. Not sure what the point is there

wotsthat

Can't see the problem myself. When you take a job terms and conditions are negotiated - that's it really. His employers think he's worth the money - what do we know about it?

The only thing I'm slightly sniffy about is a CEO getting a bonus when the share price has decreased over 12 months. I can understand other employees getting a bonus in these cicumstances if they've outperformed their peers etc.