The Royal Bank of Scotland plans to pay bonuses twice the size of salaries were vetoed by the Government.
However this news does not mean that bonuses are halted altogether; its just that bonus’ are restricted to just up to 100% of a bankers salary. It was just the 2:1 bonus ratio that was struck down by virtue of the Government being a majority shareholder in RBS. So although the bonus culture at RBS has been curtailed, something tells us that they those bankers will still land on their feet. In its annual report published yesterday, RBS said chief executive Ross McEwan will receive a salary of £1 million this year, as well as the potential for up to three times that amount through the company’s long-term incentive plan.