Stephen Hestor renders to the lynch mob

pqrdef

So what's this performance thing anyway? What's needed from the top man is the vision and judgment to make the calls which 5 or 10 years down the line, or even later, will turn out to have been the right ones.

Did Fred Goodwin make the right calls? People thought so at the time. How many performance bonuses did he get? Has he been asked to return any?

Has Hester made the right calls? Who knows? It's far too early to tell.

The answer is share options. Pay the CEO half of his remuneration in options, exercisable at least 5 years after leaving the job. They needn't be called a bonus, and they needn't be discretionary. And initially they aren't worth anything. Whether they stay worthless or turn into a fortune will be the measure of performance.

ReadingTim

pqrdef wrote: »

The answer is share options. Pay the CEO half of his remuneration in options, exercisable at least 5 years after leaving the job. They needn't be called a bonus, and they needn't be discretionary. And initially they aren't worth anything. Whether they stay worthless or turn into a fortune will be the measure of performance.

Sadly, these people will be receiving deferred / long term incentives such as share options/ awards etc as well as salary and bonus

Graham_Devon

wotsthat wrote: »

Why is it a problem?

I expect a bonus too. If I didn't get one I'd be pretty peeved unless I was taken to one side and it was explained to me why I'd under-performed or why the finances were not available.

You appear to be linking the non receiving of a bonus as underperforming.

I perceive a bonus as recognition of great performance. For going the extra length, something extra to that of which I'm actually paid to do.

I don't expect to receive a bonus just for carrying out the duties I receive a salary to carry out.

If it's target based, then its slightly different. I.e. "if you sell 100 loans, you will get £10". But that's not how this bonus is put across. You yourself put it across as expectance just for doing the job, and relate not getting a bonus to underperforming.

But it's far more than this. This is politics. And Hester is in, and knowingly entered a very VERY political bank. Until the taxpayer gets their stake sold off, it will remain political.

You can't just expect a bonus simply for carrying out what you are paid to do. Or at least, hopefully, going forward, this is what will change. You don't see police officers expecting bonuses for going a little further than their contract states. You don't see shop workers expecting bonuses for helping out a customer when their contract states they are actually a checkout operator. Bin men didn't get a bonus for going out of their way in the severe winter conditons last year. Divers didn't get a bonus for diving through the mines in Wales earlier this year. It's the job. You receive renumeration for it.

The expectations of a bonus simply for carrying out ones duty is half the problem. People cannot relate to this. You obviously can. But the majority would find it difficult to relate to the expectance of a bonus just for carrying out your job role.

Graham_Devon

pqrdef wrote: »

The answer is share options. Pay the CEO half of his remuneration in options, exercisable at least 5 years after leaving the job. They needn't be called a bonus, and they needn't be discretionary. And initially they aren't worth anything. Whether they stay worthless or turn into a fortune will be the measure of performance.

Many of the problems, and sale of the products that put us in this position, and RBS in the position it is in, was bonus fueled.

So I like your suggestion. Rather than aiming for the quick buck and not having to deal with the consequences, this would make people look at the consequences. It's what we all have to do at work afterall. We can't look to make a quick buck today and screw tommorow....we need to carry on in the job.

Jimmy_31

FTBFun wrote: »

So what?

Should have studied harder at school then.

I would have done but i kept getting expelled for no reason.

The education system in this country has been broken for years.

homelessskilledworker

HAMISH_MCTAVISH wrote: »

Agreed.

This has been an absolutely ridiculous situation.

Penalising a man who earned performance related pay, because the idiotic public don't understand how PRP works and think a "bonus" is some optional Xmas giveaway just for being nice, and the politicians are trying to distract from their own failings by giving in to populist clap-trap.

What a joke this country has become.

I think it's about time we got some cheap rate Polish Bankers, seeing as though they seem to be the answer to most other trades and professions in the UK today. And while we are at it maybe we could try a few Polish executives and politicians.

macaque_2

IronWolf wrote: »

So Stephen Hestor has rejected his bonus on the back of the quite foul hate campaign started against him by the media, general public and labour Party. Can't blame him really, is being hated really worth £1m?

I bet he's already on the phone to headhunters though looking to bail to a company with performance related pay. Who knows what joker will replace him, would anyone in their right mind sign up to be CEO of RBS now, seeing how vicious the public have been towards Hestor for no good reason?

Stephen Hestor was given a rough time and did not deserve the witch hunt that he was subjected to. However, he accepted a politically sensitive job with a £multi million income. If he cannot take heat, he should have stayed out of the kitchen.

As a group, the rabble that run our banks fully deserve all the oprobrium that is being heaped on them. They have run huge monopolies incompetently and exploited the public and businesses alike.

Jimmy_31

wotsthat wrote: »

Someone else not getting a bonus does not make you any richer - you just feel a bit better.

I'd rather put more effort into improving my own circumstances than moaning about how well others are doing.

Okey Dokey.

Thrugelmir

Pennywise wrote: »

There'd be no shortage of perfectly able people willing to do the job for the normal salary, pension, etc., without any promise of bonus.

Is that why the Civil Service spend £140 million on paying bonuses during 2010/11 ?

For doing their jobs...............

atush

wotsthat wrote: »

Someone else not getting a bonus does not make you any richer - you just feel a bit better.

So, we should expect to be all good little germans now? And feel better because others are not? Schandenfreude.