View Full Version : Your Tax Pounds at Work

8th Feb 2009, 04:41
If these folks (banks and government) were flying an aircraft........there would be a great smoking crater in the ground. Madness does reign.

Royal Bank of Scotland to pay staff £1 billion in bonuses
The Royal Bank of Scotland (RBS) is proposing to pay close to £1 billion in bonuses to its staff, just months after it was rescued by a £20 billion taxpayer bail-out, The Sunday Telegraph can reveal.

By Mark Kleinman, City Editor and Patrick Hennessy, Political Editor
Last Updated: 11:04PM GMT 07 Feb 2009

The bank’s board has begun discussions about the bonuses with UK Financial Investments (UKFI), the body set up by the Treasury to manage the Government’s shareholdings in Britain’s ailing banks.

The scale of the plan is likely to increase public anger as the recession deepens, and add to the frustration of ministers. It comes as Alistair Darling, the Chancellor, announces in The Sunday Telegraph today his plans for an independent review of the way banks are managed, including the bonus system.

The review, which ministers hope will address voters’ concerns about big payments to executives, will examine the roles of directors and institutional investors and study how British banks compare with overseas institutions.

“We cannot return to business as usual,” writes Mr Darling in this newspaper. “It is in everyone’s interest to get banks’ governance right. It would be wrong to reward people whose excessive risk-taking brought the banks down, causing misery to millions of their customers. Success should be rewarded. Failure should not.” The Chancellor will announce the detailed terms of reference of the review, and its chairman, tomorrow.

In an attempt to appease ministers, RBS has indicated that no individual banker will receive a bonus with a cash element of more than £25,000 under its plans.

The remainder of the bonuses, to be paid next month, will be in RBS shares, with a large proportion of them deferred or not paid at all if an employee leaves RBS within an agreed period, or if their area of the bank makes significant losses in the following two years.

The bank has decided it will not pay any bonuses to employees who work in loss-making areas of the business.

UKFI, which is led by John Kingman, a senior Treasury official, is considering the proposals.

About half of the bank’s “bonus pool” will consist of payments that RBS believes it is contractually obliged to pay. Much of this sum will be paid to employees of ABN Amro, the Dutch banking group for which RBS is now acknowledged to have overpaid at the height of the banking boom. The proposed remaining bonus pool, worth about £500 million, is discretionary.

Although the sum of nearly £1 billion will provoke outrage, it represents a fall of about 60 per cent on the previous year’s bonus payments. The cash component is understood to be about 80 per cent down on last year.

RBS, which has a new chairman and chief executive in place of their sacked predecessors, is sensitive to accusations that it is paying “rewards for failure”. Stephen Hester, the new boss, will give evidence to the Commons Treasury select committee on Wednesday, when he is likely to be questioned about the bonuses. His predecessor, Sir Fred Goodwin, will appear on Tuesday.

A statement issued by UKFI last week said that “as a majority shareholder in RBS, [UKFI] is in discussions on possible approaches to remuneration. No decisions have yet been taken.”

The row over bonuses will also affect employees at Lloyds, in which the taxpayer owns a 43pc stake, and Barclays. Lloyds’ executive directors are understood to be planning to retain their share-based bonuses for last year.

Barclays is understood to be planning to pay £600 million in bonuses following the announcement of its full-year results tomorrow. That represents a fall of more than 50 per cent from last year.

Barclays has remained free from government investment but it is likely to participate in the asset insurance scheme being devised by the Treasury, which officials have decided will include binding commitments on pay policies.

RBS declined to comment.


Impress to inflate
8th Feb 2009, 04:52
I understand that either RBS or BS has wiped $1 billion dollars of debt from a Russian business man who cannot service the loan anymore as the mineral market he runs has collapsed.

I wander if that has also been made public to the account holders in said bank. If I was an account holder I would be off somewhere else first thing monday morning !!

Beatriz Fontana
8th Feb 2009, 08:43
It all started going horribly wrong when we started paying politicians...

tony draper
8th Feb 2009, 08:59
Well if we elect nowt but pigs we can expect a bit of action at the trough,trouble is we are only given the choice betwixt three types of pigs to elect.:(

8th Feb 2009, 09:16
Tony Draper, why don't you run for PM, you can have my vote. :ok:

29th Jan 2012, 21:10
Hester has capitulated and will forego his bonus . . .

29th Jan 2012, 21:15
The tories are funded around 50-60% by the city. Don't expect much more than a harrumph from them. Labour are funded 70-80% by the unions, expect son et lumiere but ultimately, real politik from them.

Check me out, scathing satire & three languages all in the one sentence.:zzz:

29th Jan 2012, 21:44
Honestly, some proles just don't get it. Some of these Bankers (note the respectful use of the capital 'B') have moats to clean. You don't seriously expect them to have to fork out for such services from their base salaries, now do you? :=

....imagine the headline: "UKIP Leader Tony Draper ahead in new poll" :E

Underneath would be a story about bankers fleeing to exile in Furrinistan, and another one reporting skyrocketing share values for the British Mattock and Gallows Company PLC :)

29th Jan 2012, 23:04
Hester could theoretically receive an 8 million pound bonus under a long-term incentive plan. This gives him up to 375 percent of his annual 1.2 million pound salary, along with other share plans, based on RBS's recent share price of 28 pence.
There is talk of taxation of these awards of shares, initially at their valuation (benefit in kind) and subsequently through capital gains tax (when they are disposed of) should the shares rise in value.

I wonder what percentage of the original value will remain?

In November 2008 he left British Land and on 21 November 2008 replaced Sir Fred Goodwin as Chief Executive of the RBS Group. Hester was paid an annual salary of £1.2 million by RBS. Alongside this, he took home £7.7m in bonus and pension payments.
The family home is in Holland Park, west London, and they also have a 350 acre estate in Oxfordshire, Broughton Grange.
He also owns a chalet in Verbier, Switzerland.

31st Jan 2012, 16:15
BBC News - Former RBS boss Fred Goodwin loses knighthood (http://www.bbc.co.uk/news/uk-politics-16821650)

31st Jan 2012, 16:32
BBC News - Former RBS boss Fred Goodwin loses knighthood (http://www.bbc.co.uk/news/uk-politics-16821650)

Ok, maybe its a start, but its his head, not his knighthood,of which I would like to see him deprived.

He and his cohorts foreclosed on loans which caused a relative running a business employing six people to lose the business and the house secured against it. Six people back on the dole. I really find it hard to believe the man hasn't died of high speed lead poisoning (or slower speed steel) yet.

Ancient Observer
31st Jan 2012, 16:46
What does one say when there are 10,000 bankers drowned in a very deep sea?

It's a start

31st Jan 2012, 17:50
The dockers thought they were invulnerable, and when containerisation stopped their wholesale theft, they held London docks to ransom. Surprise, their jobs moved to Felixtowe, without them.

The Fleet Street print workers did much the same, Fleet Street moved to Wapping, again without their help.

Who will be first to feel the result of similar practices, Bob Crow's underground 'drivers' (overpaid door minders), or the bankers?

Come the revolution...............

31st Jan 2012, 20:57
Funny how Brenda Dean, of SOGAT fame, is now 'Baroness Dean Of Thornton-Le-Fylde', a government-appointed 'non-executive director' of NATS. (They do air traffic control, by the way, nothing to do with printing).

31st Jan 2012, 21:05
Sleepless nights followed by knightless sleeps for Fred.

Krystal n chips
1st Feb 2012, 05:55
" The dockers thought they were invulnerable, and when containerisation stopped their wholesale theft, they held London docks to ransom. Surprise, their jobs moved to Felixtowe, without them."

True, the dockers did themselves no favours in not embracing the changes introduced by containers....however, in case you forget ( or choose to simply ignore ) once upon a time, being a docker in the pre-dock registration days could mean a hand to mouth existence ( no doubt this would meet with your approval ) and my late maternal grandfather was a Liverpool and then Pomona Dock Manchester docker in both eras. Try thinking about this fact and then try thinking as to why they resisted.

The Fleet Street print workers did much the same, Fleet Street moved to Wapping, again without their help.

Strangely, one bunch I had no sympathy for....there again I also loathe Eddie Shah.

"Who will be first to feel the result of similar practices, Bob Crow's underground 'drivers' (overpaid door minders), or the bankers?"

Last time we had a thread about the underground, the politics of envy showed a distinctly blue green hue....they do actually drive the tube trains and frankly deserve the remuneration. ......Bankers however......

1st Feb 2012, 12:39
The Fleet Street print workers did much the same, Fleet Street moved to Wapping, again without their help.I notice they are moving into Luton now, just down from Motorbodies, opposite the Vauxhall works.

1st Feb 2012, 12:51
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