Bona fide bonuses?February 2014
Bonuses of twice annual salary may continue to be paid at the UK government-controlled Royal Bank of Scotland (RBS).
EU rules permit bonuses equivalent to a year’s salary but larger amounts require the shareholders’ approval – which is considered likely as the government holds 80% of the bank’s shares.
David Cameron, the UK prime minister, added to the speculation when he told parliament only that he would veto any attempt by RBS to increase its overall pay and bonus bill.
However, the number of senior and other employees has been falling at RBS and Cameron’s assurance would not stop payment of 200% bonuses to some individuals.
RBS, whose most recent annual results, announced last February, showed a £5.17bn ($8.46bn, €6.2bn) loss, is at present discussing remuneration with shareholders, including the body created to manage the government’s bank holdings.
The next round of bonuses, payable in January 2015, is likely to be put to the 2014 annual meeting, expected to take place in May.
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