Treasury blocks big bonuses at RBS

Treasury blocks big bonuses at RBS

Royal Bank of Scotland has been told by the government it will not be able to grant bonuses worth more than the salaries of its employees after the Treasury said it had blocked an application by the taxpayer-backed lender to hand out awards of up to 200pc of base pay.

The Treasury, which controls an 81pc holding in the bank, said RBS would be a “back-marker” for banking industry pay and average remuneration at the lender would continue to fall this year.

In a statement, RBS said it had been informed by the UKFI, the body in charge of the taxpayer’s holding in the bank, that any application at its upcoming annual shareholder meeting to award bonuses worth twice an employees fixed pay would be blocked, effectively ending any hope of getting the measure through.

RBS warned the decision to block larger bonuses could lead to a “commercial and prudential risk” largely as a result of senior staff deciding to quit the business to work at banks with the ability to hand out bigger pay packages.

2 responses to “Treasury blocks big bonuses at RBS

  1. Why not give these criminals more money?I am 90% sure they deserve it for all the hard fraud and misleading of their countrymen,not to mention they wiggled their freakin way into tons did I say TONS of rmbs agreements and every part of the big fraud.Gotta love obama and all his pals.

  2. DC, the Treasury in the article is the Treasury in the UK not the US Treasury. Obama has nothing to do with the RBS situation. In the US, it is up to the shareholders to block bonuses or get rid of the board of directors and CEO for the big banks in the US.

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