Bank Bonus to run into Billions

[enaid]

Re: Bank Bonus to run into Billions

The bonus is for exceeding targets and not for just hitting them. You cannot pay a bonus for not hitting a bonus within the area of banking that you work within because is plain silly.

parlez vous francais ? pmsl

[leclerc]

Re: Bank Bonus to run into Billions

The bonus is for exceeding targets and not for just hitting them. You cannot pay a bonus for not hitting a target within the area of banking that you work within because is plain silly.

Ooops :o

[EXC]

Re: Bank Bonus to run into Billions

What does not paying bonuses at all to staff for making their business more profitable do to staff who are helping increase that profitability against targets set?

You've lost me.

[pallaz1851]

Re: Bank Bonus to run into Billions

Leclerc,
Moore Capital is not a bank but a hedge fund. Their bonuses are irrelevant, imho to the discussion of bank bonuses.

I loosely use the term Banking, it is a collective within the Financial Industry, one begets the other.....the bar is set in one area and raised in another.....Globalisation is with us permanently and even exists within Banking!, why do you think the toxic CDV's were sold and hedged against which affected all 'Banks' as we know them resulting in the bail outs....

There is no action that does not bring a reaction, the ripple effect goes all the way down to the poor individuals that experience the might of the 'Banks' requiring their pound of flesh at all costs and with the might of the Law that is there to protect them.....

As my Son said to me recently...no one made the people take out the loans and get so far into debt.......that is correct and they have to take their responsibilities from their actions, but when there is an irresponsible lending policy from the Banks, fuelled by a bonus/commission system to reach 'targets' (another word I hate) then corruption will exist ie self certification, backed by broker/surveyor et al. which puts 'vulnerable' people into a firing line they are certainly not aware of the consequences of....I would therefore ALWAYS put the onus onto the lending party (Banks) they know whether the person is able to pay it back.....I would suggest their own requirement (not the Bank) to meet targets to pay themselves increased bonus' create the problem.....

I appreciate you have worked in the Banking Industry (Natwest) however, not everyone in that industry is scrupulously clean......

[leclerc]

Re: Bank Bonus to run into Billions

Leclerc,
Moore Capital is not a bank but a hedge fund. Their bonuses are irrelevant, imho to the discussion of bank bonuses.

I loosely use the term Banking, it is a collective within the Financial Industry, one begets the other.....the bar is set in one area and raised in another.....Globalisation is with us permanently and even exists within Banking!, why do you think the toxic CDV's were sold and hedged against which affected all 'Banks' as we know them resulting in the bail outs....

There is no action that does not bring a reaction, the ripple effect goes all the way down to the poor individuals that experience the might of the 'Banks' requiring their pound of flesh at all costs and with the might of the Law that is there to protect them.....

As my Son said to me recently...no one made the people take out the loans and get so far into debt.......that is correct and they have to take their responsibilities from their actions, but when there is an irresponsible lending policy from the Banks, fuelled by a bonus/commission system to reach 'targets' (another word I hate) then corruption will exist ie self certification, backed by broker/surveyor et al. which puts 'vulnerable' people into a firing line they are certainly not aware of the consequences of....I would therefore ALWAYS put the onus onto the lending party (Banks) they know whether the person is able to pay it back.....I would suggest their own requirement (not the Bank) to meet targets to pay themselves increased bonus' create the problem.....
In retail banking I would agree. I know advisors would have looked at increasing the "new borrowing" ie excluding same bank loan you would increase the amount plus a little "spending money" to lift the threshold over an amount that increases the points you get towards the branch target. In fact, the "lies" told then are most certainly in effect now with packaged accounts. The loan "lies/mistruths" have gone to be replaced by accounts you pay for. In life there are always targets, ie target weight when dieting, targets of what you have to do in a day/week/month/year. I wish I knew why such bonuses started out historically but they are here to stay.


I appreciate you have worked in the Banking Industry (Natwest) however, not everyone in that industry is scrupulously clean......

I most certainly was never scrupulously clean whatsoever, but thankfully I wasn't in the same league as others(albeit I knew the tricks of how to ).

[leclerc]

Re: Bank Bonus to run into Billions

RBS 'should be bonuses back-marker'
(UKPA) – 2 hours ago
The Royal Bank of Scotland should be a "back-marker and not a market leader" when it comes to handing out bonuses, the Scottish Secretary said.
Michael Moore told MPs bankers should have to make "adjustments" with other members of the public as the country comes of out recession.
He said: "As the predominant shareholder in RBS, the Government expects the bank to be a back-marker and not a market leader on bonuses.
"People across the country are having to make adjustments as we come out of recession and repair our public finances. Everyone expects bankers to be part of this process."
Mr Moore's comments came after a question from Labour's Anas Sarwar, who represents Glasgow Central, about bankers at RBS receiving large bonuses.
Mr Sarwar added: "Given the FSA report found that there were 1.1 million complaints by RBS customers in one year and more than 50% of those were shown to have been dealt with inappropriately, do you think it's appropriate for RBS executives to receive large bonuses this year and if not what are you going to do to deal with it?"
Mr Moore said the agreement to pay bonuses at market rates was agreed with the Labour Government when it took control of RBS during the banking crisis. It currently owns 70% of the bank.
The Secretary of State added: "We want to see bonuses lower this year than last year, that's absolutely clear cut."
Copyright © 2011 The Press Association. All rights reserved.



The Press Association: RBS

[leclerc]

Re: Bank Bonus to run into Billions

Exclusive: RBS Weighs Up £2m Bonus For Hester


Exclusive: RBS Weighs Up £2m Bonus For Hester


Mark Kleinman February 02, 2011 6:22 PM

• Recommend post (0)

The Royal Bank of Scotland (RBS) is weighing up awarding Stephen Hester, its chief executive, a bonus of about £2m for last year, I have learned.
The taxpayer-backed bank is in talks with UK Financial Investments (UKFI), which manages the Government’s shareholding in RBS, and other shareholders about the proposed payment.
A final decision about Hester’s bonus, which will be paid entirely in deferred shares, will not be made until shortly before RBS reports its annual results on February 24.
City sources familiar with the deliberations told me this evening that Hester’s payout was likely to be in a range between £1.8m and £2.2m.
The figure of about £2m is not yet set in stone because it has not yet passed through the political filter of, say, a personal request (should one be made) by the Prime Minister or Chancellor to the RBS boss to exercise additional restraint in terms of his pay. Last year, he waived his £1.6m bonus.
Another important factor in the ultimate settlement of Hester’s bonus for 2010 will be the broader question of whether the banking industry is able to reach an agreement with ministers about boosting business lending and more transparent pay disclosure.
A failure of the so-called Project Merlin would be likely to result in greater pressure being applied by the Government to the boards of the taxpayer-backed banks – namely RBS and Lloyds Banking Group.
Under that scenario, Hester would almost certainly receive a lower bonus than that (or at the bottom end of the range) presently being discussed.
RBS is planning to pay just over £1bn in bonuses across its investment banking business for last year, a figure which has also not yet been agreed with the bank’s largest shareholder.
Had Hester been a member of the old guard who brought RBS to the brink of collapse, then a bonus in the region of £2m (or indeed any sum) would rightly have been seen as outrageous.
That isn’t the case, however. Hester gave up a well-paid (and much less high-profile) job as the chief executive of British Land, the property company, to join the Edinburgh-based bank at the request of the previous Government.
And according to the bank’s past pronouncements, he can receive the vast majority of his pay package only if he salvages a substantial amount of value for the British taxpayer.
The terms of Hester’s contract say that he is eligible for an annual bonus of about £2.4m, or twice his base salary. In an “exceptional year” he can be awarded 250 per cent of his salary, or £3m, as a bonus.
Before anyone accuses me of siding with RBS, it’s only fair to point out that the bank’s proposals for paying its chief executive – as already discussed with major shareholders – go beyond the requirements of the City regulator, the Financial Services Authority.
As I revealed at the weekend, Penny Hughes, who chairs RBS’s boardroom remuneration committee, has devised a new scheme for paying Hester that will mean that he will never receive an up-front cash bonus during his career at the bank.
Many of RBS’s largest City investors have been urging Hughes to award Hester a substantial bonus for 2010 because of his importance to the successful revival of the bank.
The ‘share bank’ proposal has, I am told, been generally well-received by investors, although it has yet to be rubber-stamped by UKFI.
Shareholders have also been briefed on the RBS board’s decision-making process in relation to bonuses for Hester and other senior executives.
The bank has privately poured cold water on a newspaper report last month that Hester would receive his full bonus entitlement of £2.4m. A £1m figure reported at the weekend also seems to have been wide of the mark.
It would be surprising if George Osborne, the Chancellor, did not also have a say in the outcome of these negotiations. In other words, according to someone close to the situation, "any outcome is still possible".
RBS and UKFI refused to comment tonight.


Exclusive: RBS Weighs Up £2m Bonus For Hester | royal_bank_of_scotland | stephen_hester | uk_financial_investments | Kleinman | Sky News Blogs

[leclerc]

Re: Bank Bonus to run into Billions

Barclays | UK Uncut

There is a demo in Tunbridge Wells, Kent this Saturday.....