Shares insult

Gerry Grimstone, chairman of Standard Life, urges the new government to maintain stability in the tax system; fair enough. But Sir Philip Hampton, chairman of Royal Bank of Scotland, proudly announces the fourth change in under two years in their so-called long-term incentive plan threshold (Business reports, 15 May) from the old regime's plan, to 70p, then 50p and now 57.5p.

The latest is hardly the "victory for shareholders" trumpeted by your headline; it remains an insult both to taxpayers and to those shareholders who took up the rights issue at 200p.

And if 50p was set too low as Hampton now agrees, how on earth can a mere 7.5p extra be acceptable (or even the 77.5p for full bonus awards), when stock market volatility can have a far greater effect on individual shares than any brilliance of the board?

JOHN BIRKETT

Horseleys Park

St Andrews, Fife