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What does RBS pay it's top People?

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  • What does RBS pay it's top People?

    http://www.bbc.co.uk/news/business-12778142

    What RBS pays its top people

    Robert Peston | 16:01 UK time, Thursday, 17 March 2011


    It is with no real enthusiasm that I write once again about bankers' pay. If you feel you've read this story before, well I would understand.

    But there is a public interest in shining a light on the remuneration practices of Royal Bank of Scotland, since we as taxpayers rescued it from extinction in the autumn of 2008 and we own 83% of the bank.
    The guys (mostly men) who run that bank work for us, in that sense.
    So what have we learned from the publication of its annual report and accounts today?
    Well a bank that made a loss for the year of £1.67bn in 2010 (way better than the £35bn it lost in 2008 but still a loss) paid a total of £375m to 323 so-called "code" staff, or around £1.2m on average to each of them.
    A couple of further things need explaining.
    First "code" staff are those executives who - under rules set by the Financial Services Authority, the City watchdog - are perceived to do things that have a bearing on the risks that banks takes. They are executives with jobs that matter to the stability and health of a bank.
    And second, some of those 323 earned more than £1m, and the majority earned less: £1.2m is just the average.
    According to the bank, there are something over 100 RBS employees in total who made more than £1m last year. Which, on the basis of the average figure of £1.2m for code staff, implies that most of the higher paid individuals pocketed well over £1m.
    What's more, there are other RBS employees, who aren't code staff - some traders for example - who earn even more than top-paid code staff (hope you're still with me).
    Anyway, for what's it worth, RBS's code staff earn less than Barclays' 231 code staff, whose average pay was £2.4m per head.
    So presumably the Chancellor of the Exchequer will point to this disparity as proof that taxpayer-owned RBS is showing restraint.
    You will have your own views on whether RBS is showing enough restraint.
    RBS makes another disclosure of some interest, which is the pay of its five highest paid senior executives below board level (a disclosure it and the other big banks promised to make under the recent Project Merlin deal with government).
    These five executives earned £5.95m, £5.93m, £3.36m, £3.24m and £2.62 respectively - massively less than their equivalents at Barclays (see my post on Barclays' pay).
    But, again, this does not tell the whole story of what RBS pays.
    There are other RBS staff, working in high-paying bits of its investment bank, who earned more than these five.
    And, just to remind you, RBS's chief executive Stephen Hester earned £7.7m last year.
    UPDATE 18:17
    Earlier this week, the goverment received a report (from Will Hutton) urging that public and private sector organisations publish the ratio of their top people's pay to median or typical pay within the relevant organisaton.
    Now in the case of RBS, its chief executive's pay of £7.7m is equivalent to about 233 times typical pay in finance, compared with other FTSE100 bosses who on average earn 120 times typical pay.
    As for for top civil servants, well they tend to earn around £160,000 a year, around 6 times a typical public official's salary.
    Or to put it another way, RBS's boss, Stephen Hester, seems to be handsomely paid for public sector or private sector.
    Why? It's because he's a banker.
    Tags: None

  • #2
    Re: What does RBS pay it's top People?

    http://www.guardian.co.uk/business/2...twenty-million

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    • #3
      Re: What does RBS pay it's top People?

      I'd like to know where they get that figure for top civil servants, as my brother is one and I'm pretty sure he earns well over that figure. I actually find it almost impossible to talk to him nowadays as he's become so institutionalised that he just speaks in "Civil Servant" alll the time which is a language of its own.

      I'd love to see him come and live on what I, his brother, have to live on for a couple of years. I honestly don't think he has any perception of reality.

      Comment


      • #4
        Re: What does RBS pay it's top People?

        There is a never ending spiral of increased earnings and self justification of that, within the Banking system. Somehow the statement that these men earnt 'massively LESS' than comparative personnel within Barclys is almost an apology.....

        When are we ever going to see the justification of these salaries being 'transparently identified' as producing an end result to warrant them in the first place....these salaries are on another planet....from the general public......by bailing out the Banks, we gave them a playing field they could not lose within, easy money from the Government at virtually no real interest to loan it out again at prohibitive rates to business'....if they ever did anyway......

        I read the other day of a ship building firm in the North East.....yes!! ship building within the UK....and they had gone from building small vessels to building 2 - 3 million pound vessels in a very short space of time and in the year of 2010 had employed a further 300 personnel off the dole queues....Note.....without an overdraft....the Banks in the UK wouldn't lend to them....what an appalling state of affairs...

        So, I would like to see a 'transparent' justification of these salaries with long term end results.....rather than saying 'we have to pay this to keep our staff because the other Banks are paying more'.....

        Comment


        • #5
          Re: What does RBS pay it's top People?

          The bailed out, Royal Bank:
          http://www.efinancialnews.com/story/...eadlines-PE-IB

          And, all the while 'the Tax-Payer' has to suffer cut backs...Astonishing!

          Comment


          • #6
            Re: What does RBS pay it's top People?

            Caspar, 'they' have no perception and neither do 'they' care.

            The Gov., will keep the Bankers sweet.
            But, having said that, the Gov. should not forget nor, put aside the power of the electorate.

            The Royal Bank, nigh on brought this country to it's knees: October 2008;
            the tax payer bailed them out.

            "The People" of this country, will not forget!
            Last edited by Angry Cat; 17th March 2011, 23:08:PM. Reason: typo

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            • #7
              Re: What does RBS pay it's top People?

              Originally posted by pallaz1851 View Post
              ...I read the other day of a ship building firm in the North East.....yes!! ship building within the UK....and they had gone from building small vessels to building 2 - 3 million pound vessels in a very short space of time and in the year of 2010 had employed a further 300 personnel off the dole queues....Note.....without an overdraft....the Banks in the UK wouldn't lend to them....what an appalling state of affairs...
              Appalling indeed [Emphasis Added]

              How on earth can it be acceptable for a Bank (RBS) who has been bailed out by the British (Tax Paying) Public, to be paying out these massive bonuses?

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              • #8
                Re: What does RBS pay it's top People?

                Originally posted by Angry Cat View Post
                Appalling indeed [Emphasis Added]
                What emphasis?

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                • #9
                  Re: What does RBS pay it's top People?

                  Originally posted by Amy View Post
                  What emphasis?

                  the Banks in the UK wouldn't lend to them....:beagle:

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                  • #10
                    Re: What does RBS pay it's top People?

                    Originally posted by Angry Cat View Post

                    "The People" of this country, will not forget!
                    I honestly hope you're right, because from what I see and hear (not that there's much talk of bankers salaries and bonuses round here) it is the immediate that counts, not the past and at the end of the day I believe most people vote for what they think will be best for them, NOT what they think will be best for the country as a whole.
                    Last edited by Caspar; 18th March 2011, 18:38:PM.

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                    • #11
                      Re: What does RBS pay it's top People?

                      Originally posted by Caspar View Post
                      I honestly hope you're right, because from what I see and hear (not that there's much talk of bankers saleries and bonuses round here) it is the immediate that counts, not the past and at the end of the day I believe most people vote for what they think will be best for them, NOT what they think will be best for the country as a whole.
                      The Banking Crisis, Caspar:
                      The Royal Bank, nigh on brought this country to it's knees: October 2008;
                      the tax payer bailed them out.

                      People lost their jobs;
                      had their homes repossessed;
                      employers had to close down/lay off workers...companies etc., became insolvent.

                      How, could the consequence of all that reckless and irresponsible lending be forgotten?

                      IMO, the people (Tax Payer) are enraged about the bailed-out Bankers bonuses!

                      Comment


                      • #12
                        Re: What does RBS pay it's top People?

                        I'm with you on this one, the British taxpayer should be more demonstrative in their anger at these salaries and bonuses.
                        Personally I have no problem with large salaries and bonuses as long as the company paying them is financially viable and has not been bailed out but the great British taxpayer.
                        Oh and what about these large companies who have negotiated smaller Corporation Tax, how is that fair when smaller companies cannot negotiate a smaller Corporation Tax bill ? There are thousands of small - medium business who employ staff who are being hit hard and yet cannot negotiate a small bill to help them through.

                        Comment


                        • #13
                          Re: What does RBS pay it's top People?

                          http://www.dailymail.co.uk/news/arti...323-staff.html

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                          • #14
                            Re: What does RBS pay it's top People?

                            AC, I hope you're right. That irresponsible lending contributed to me losing my home and being where I am now. I won't forget. Sadly I still think many vote purely in their own interests and not the countries in General Elections - a lot don't seem to understand the difference between local and national government.

                            Comment


                            • #15
                              Re: What does RBS pay it's top People?

                              I think we have every right to be angry at the bonuses paid since we as majority stakeholders are receiving no benefit since the share price is below the amount we paid for the shares. Is the over £1million pounds the cash amount or shares linked pay? I know Hester has share linked pay, ie paid in shares that he cannot cash for a period of 3 years(which if truth be known means that in 3 years we'll look at this post and probably say that he got a far better deal than it looks currently on paper)?
                              "Family means that no one gets forgotten or left behind"
                              (quote from David Ogden Stiers)

                              Comment

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