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Sunday, 6 December 2009

RBS must cancel bonuses

I am somewhat astounded that the Board of Directors at the Royal Bank of Scotland are being so petty and arrogant at the same time.

Vince Cable MP was right to call their bluff over this and say go on then, quit.

The Directors defence was they have to pay these bonuses out of £1.5billion for them to remain competitive.

I disagree, no-one in the banking community is hiring new staff at the current time and secondly, if the Board of Directors had kept their finger on the pulse and run their bank responsibly they wouldn't have needed the massive public funded bailout resulting in the British taxpayer owning 70% of the bank.

The Chancellor of the Exchequer should have a vote in this and the right to veto these outrageous bonuses.

I don't give a damn if these bonuses are tied into the members of staffs contracts or conditions of service, bonuses should be paid as a reward for good work. How do the Directors justify these bonuses this year?

I appreciate the staff within the investment arm have generated £6billion of profit, but perhaps the bonus should therefore only be assessed on 30% of that amount?

The entire board of Directors of the Royal Bank of Scotland cannot in practice all quit at the same time. The Financial Services Authority would not allow this to happen, but the directors would be able to announce a collective intention to quit, so that replacements could be found in an organised manner.

And the final word goes to my former boss, Vince Cable MP, the Liberal Democrats Shadow Chancellor who said; "I would welcome their resignations, as the bank cannot hold the taxpayer to ransom.

"As a state run bank, the Government must finally take control and ensure that both its pay and lending practices are in the public interest."

As usual on these matters it is only the Liberal Democrats Vince Cable talking sense.

1 comment:

Technomist said...

There are plenty of other fish in the sea.

I would accept their resignations and not let them keep any pension rights or in any other way be 'complensated' for going, pour encourager les autres. The directors have not shown themselves as having the appropiate skill-set required for their current positions.

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