Treasury intervened in RBS wage-busting bonus plan
THE UK Treasury over-ruled plans by Royal Bank of Scotland to pay some staff bonuses worth twice their basic pay to avoid a major public controversy, the head of the body that owns the government’s stake in bailed-out banks said.
James Leigh-Pemberton, chairman of UK Financial Investments (UKFI) said that his organisation had recommended RBS be allowed to pay that level of bonus to help it retain staff and attract top talent. However, after the Treasury intervened, RBS was told it could pay bonuses worth only the same as staff’s basic pay.
“In order to avoid a major public controversy at that time it was considered that it would be more appropriate not to put that resolution to shareholders,” he said.
Leigh-Pemberton also said that progress made at RBS had accelerated the timeframe for the government to sell off its 79 percent stake in the bank.