NatWest Bank: Staff Bonuses the facts 2007

[Nattie]

The Maximum bonus a Customer Advisor(Personal Banker) can get is £16000 per year.
The bonus is made up of two parts £400 basic(CA is on 5 times cashier bonus) for Service and £400 for sales bonus.
Previously I have stated that service scores can effect sales scores, that is wrong and I admit to my error.
Every product the bank does has a points value from 5 points for a step account to potentially 3000+ points for investment business pased onto Financial Planning Managers(who are salaried and not on commission although targetted as well).
Loans with PLP is double the value. If it is new business and Loan plus PLP adds to more that £12000 then it is 500 points. PLP can be cancelled within the first 14 days of a loan and the loan payment will be as quoted on the CCA form.
There are tiers of bonus on sales. Each branch has a target and if the hit 100% then they can get up to £100 from 110% it is £200 from 120% it is £300 and over 130% it is the maximum £400. If the branch gets less than 100% then they get zero bonus on sales. That is based over a quarter so the branch cumulatively have to reach 100% to get any bonus on sales.
The second element to bonuses is Service. If you have been into NatWest branches and they have mentioned about the branch questionaire then that is what they are talking about. The surveys are about the local branch and on the top are marked with the branch name, so if your branch is Manchester and you use Bristol branch, unless you change that bit then you will be a reflection of the other branch. Most questions relate to the local branch.
Any questions?

[pam1]

Re: NatWest Bank: Staff Bonuses the facts 2007

Any Chance you could get this on LLoyds, can you get your smoke circles going , please please, please pretty please and one place i would love to have the insight to, is LLoyds collections Bonus Scheme, Nattie work your magic or can we advertise for the info.

[Nattie]

Re: NatWest Bank: Staff Bonuses the facts 2007

Tomorrow the Bank I work for will be publishing its results and I am certain that it will be announcing record profits. If and i say IF it announces a loss, I would be surprised by this as well, please remember something, I will not be sad. This month, well March, is going to be the biggest month for Bank Workers of RBS Group resigning(annually this is likely to be the case). Staff get a yearly bonus called Profit Related Pay(PRP). Normally what happens is that the Board of RBS Group meet a day after the results are announced and decide, up the maximum of 10% of pay, on a one off bonus. Now last year, they made the fantastic decision to guarantee 10% for the next year ie 2008. March Payday will be big bucks day for all RBS Group staff.
I have edited this post because I believe that the information I posted re how the bank is doing is price sensitive and is a disservice to the bank to suggest how well or otherwise that the bank is doing. I think we are having a cracking year 2008.

(tomorrow I guess i will be eating my words)

[littlesally]

Re: NatWest Bank: Staff Bonuses the facts 2007

Any questions?

lol
You make me laugh Nat!!

Sally xx

[natweststaffmember]

Re: NatWest Bank: Staff Bonuses the facts 2007

RBS braces for first annual loss Sign outside RBS building RBS has been hit hard by the global financial crisis Royal Bank of Scotland has signalled it expects to make its first annual loss in 2008 as it unveiled more write-downs on assets hit by the credit crunch. The beleaguered lender said bad debt charges and write-downs totalled £206m in the third quarter, on top of £5.9bn in the first half of the year. RBS boss Stephen Hester told BBC News making a profit would prove difficult. RBS also detailed plans to raise £19.7bn as part of the government's bank bail-out plan. The bank's third-quarter write-down would have been higher, but accounting changes relating to the way securities are classified provided a boost of £1.2bn. The firm said its operating profit in the first nine months of 2008, before credit market write-downs, was 8% lower than a year earlier. Banks like RBS aren't supposed to make losses Robert Peston, BBC business editor Read Robert's blog History: Royal Bank of Scotland "The scale of the market disruption and the economic downturn that is happening as a consequence means that credit losses are rising very sharply," Mr Hester said. "I suspect that people may conclude that profits will be difficult to achieve this year," he added. The firm reported in August a loss for the first half of the financial year of £691m. 'Momentous' Mr Hester said RBS troubles stemmed from the bank's decision to lend far too much in good times. FROM THE TODAY PROGRAMME More from Today programme Through its investments it became far too exposed to disastrous sub-prime loans to US homeowners with poor credit histories. It also bought the giant Dutch bank, ABN Amro, at the height of the boom. BBC business editor Robert Peston said it was momentous that RBS, which can trace its history back almost 300 years, was heading for its first full-year loss. He said RBS had survived one set of multi-billion pound losses on the sub-prime phase of the credit crunch. It would now be tested by rising impairment charges on more conventional lending as a recession made life tough for individual and companies with big debts, he added. Dividends to resume RBS said it wanted to raise up to £15bn from investors by selling shares at 65.5p each. If the shares are not taken up, the government will acquire them. The government will also directly buy preference shares in the bank - worth a total of £5bn. PREFERENCE SHARES A class of shares that usually do not offer voting rights, but do offer a superior type of dividend, paid ahead of dividends to ordinary shareholders. Credit crisis glossary Under the terms of the government agreement, dividend payouts are restricted, directors' pay limited and banks are required to pay 12% a year interest on the preference shares. RBS said it would buy back the preference shares "as soon as it is prudent to do so", which would allow it to restart dividend payments. Mr Hester said he would be "disappointed" if he couldn't pay dividends again in 2010. Lloyds TSB and HBOS are also taking part in the government bank rescue plan, whereas Barclays has raised cash from the Middle East. Source: BBC NEWS | Business | RBS braces for first annual loss
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Lib Dems call for 'riot act' as RBS plans bonuses Taxpayers' money to go to bankers some believe are responsible for the company's financial mess By Emily Dugan and Simon Evans Sunday, 2 November 2008 Related Articles * City meltdown turns to a chill wind in the North * The rate cut you won't see: Bank set to slash interest by up to 1% * John Rentoul: Spend! Spend! Spend! * Credit insurer warns UK firms to be more open about their difficulties * Venture capital trusts could struggle to survive, says study * A glimmer of light in the housing market gloom * Rose to face flak as underperforming M&S results are unveiled * Property boss: 'The PM's spending is long overdue' * Germans freeze £21bn property funds * Spowart’s last-ditch grab for HBOS ‘is not taken seriously’ * Print Print * Email Email Search Search Go Independent.co.uk Web Bookmark & Share * Digg It * del.icio.us * Facebook * Reddit What are these? Change font size: A | A | A The Government came under renewed pressure yesterday to clamp down on banking bonuses after news that Royal Bank of Scotland – which was bailed out last month with £20bn of taxpayers' money – is to pay bonuses to thousands of its staff. Vince Cable, the Liberal Democrats' Treasury spokesman, said the Government needed to "read the riot act" to bankers and called for guidelines on bonuses to be made tougher and clearer. "We've got a situation where the Government is underwriting high-bonus, high-profit banking," said Mr Cable, who is hoping to raise the issue in the House of Commons this week. "The Government has got to bring the bankers back in and read the riot act to them. They've had taxpayer support and they're likely to need more; they can't keep doing what they want. There was a broad understanding but this has either broken down or it was completely meaningless. Now we need firm and clear guidelines." RBS has earmarked £1.79bn to cover "staff costs" – including bonuses – to hand out to investment banking employees for the first six months of this year. The news provoked outrage, as many believe those likely to receive the bonuses are the same people who were responsible for the bank's downfall. The Government had already specified that none of the bank's board of directors be paid bonuses this year. But ministers have said nothing about what should happen with regard to pay and perks for the remainder of the staff. Mr Cable said that the timing of the bonuses was "extremely insensitive and crass" and showed that the Government's guidelines had not worked. But a source close to the Treasury made it clear that the Government had little intention of clamping down on the wider bonus culture. "The Treasury and Government have no problem with any of the banks paying bonuses to staff," he said. "It was stipulated in the terms of the recapitalisation plan that board members shouldn't receive bonuses, but it's up to management how the rest of the company is remunerated. The Government is a shareholder and shouldn't run the company. Hard-working staff members shouldn't and won't be penalised. The guidelines are clear." A representative of RBS shareholders added: "If nobody in the company ever gets a bonus then RBS and the other banks that participated in the bailout won't have any staff left." Meanwhile, the Secretary of State for Scotland, Jim Murphy, was in talks yesterday about a possible alternative buyer for HBOS. The move followed criticism of the proposed merger of HBOS and Lloyds TSB, which was given the green light despite competition concerns raised by the Office of Fair Trading. But while bankers continue to get bonuses, the news has not been so good for workers elsewhere. Some 5,000 employees of the digger manufacturer JCB were told on Friday that they would not be receiving a Christmas bonus. The news came after workers agreed a £50 pay cut to secure their jobs. The Staffordshire plant has seen a 55 per cent decline in sales and has announced 600 redundancies. The GMB union convener, Gordon Richardson, said: "I understand that the company has to save a substantial amount of money. We haven't always had Christmas bonuses – we have gone without them in the past." Source: http://www.independent.co.uk/news/uk...es-984638.html
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There is a reason why both these stories have been put here. I was party to non verbal communication which means that I know that RBS Group will not make a profit this year. I am almost 100% certain. I didn't want to comment on this because I felt it was share price sensitive data. The first news article more or less confirms this. I want to deal with staff bonuses and RBS first. 1) RBS Group staff including natwest staff have since they were taken over, enjoyed 10% profit related pay(the maximum possible) in March's pay packet. In a very recent internal video from the Head of RBS UK, Alan Dickinson, given in the form of a question and answer session he was asked directly about the PRP. To contextualise this, he was assured and clear and always looked at the interviewer yet on this question alone, he was imho, evasive, not looking at the camera and had the look of someone who knew that the answer was we are getting £0.00 PRP next year and not wanting to say that.I think we are going to make a loss when they are announced next year. At least next March, not many staff will resign cos there will be no PRP. 2) Cutting bonuses is just disastrous for rank and filers. At the end of the day you work hard for that, and you achieve targets and yet someone says, no we don't want you to have them because the government is putting money into the Group. Do you really want RBS Group staff to quit and join Barclays or HSBC or Santander Group who have not asked for government money? RBS UK is making money this year, it will make profit this year, do you want your money back if there is no incentive to do the job? Before you all jump on me, there is service bonuses as well as sales bonuses. Take my bonus away and you take my incentive for working away. You want your money back soon, then do not make staff who are achieving their targets and exceeding them scapegoats for decisions made in the higher echelons of the bank. Vince, keep your nose out of my pay packet.

[natweststaffmember]

Re: NatWest Bank: Staff Bonuses the facts 2007

I have it on fairly good authority that RBS Group will announce a loss when they publish their results in February 2009. No evidence of how much but the good days are definitely OVER

[natweststaffmember]

Re: NatWest Bank: Staff Bonuses the facts 2007

News - RBS Group axes profit-share scheme

RBS Group axes profit-share scheme

2009-02-18
RBS Group has axed its profit-share bonus scheme as part of a wider a government agreement over the future of pay and reward at the bank.

The existing profit-share share bonus scheme, worth 10% of salary, will not be paid for 2008 and will be axed for all future years.

However an equivalent payment will be made as part of the existing monthly award package to employees below managerial grade beginning in 2009. The average salary for this group is £18,979.

RBS Group chairman Sir Philip Hampton said: “A fundamental reform to pay and reward is needed to reflect the reality of the situation the company is in. We fully recognise, as a company, that we have to change materially not just the business we do but also the way we do business.”

RBS Group confirmed its approach to Pay and Reward for 2008/09 as follows:

• No bonuses or pay increases will be made to staff associated with the major losses suffered in 2008.
• As previously announced board executive directors will receive no bonus for 2008 performance and no pay increase in 2009.
• Agreement has been reached with Unite in the UK for staff which they represent below managerial grades. Ongoing discussions with staff representatives are taking place in other regions. This will mean a pay freeze for directors and executives in the Group worldwide, and for most staff in the US and the Global Banking & Markets division. On average, other staff will receive below inflation pay rises.
• No discretionary cash bonuses will be paid in 2009 for performance in 2008. Only legally binding guaranteed bonuses will be paid. Total cash bonus payments for 2009 will amount to £175m. Therefore total cash spend overall will have been reduced by more than 90%.
• The existing profit share bonus scheme, worth 10% of salary, will not be paid for 2008, and will be terminated for all future years. An equivalent payment will be made as part of the existing monthly award package to staff below managerial grade, beginning in 2009. The average salary for this group is £18,979.
• Staff who are essential to the bank’s recovery and who might otherwise be at serious risk of leaving, and who remain with the bank will receive a deferred award for 2008. The deferred award will be released in three equal annual instalments beginning June 2010 and payable in sub-ordinated debt of RBS, that is, not in cash.
• In individual cases up to 100% of these deferred awards will be subject to forfeiture at the discretion of the remuneration committee and if future losses arise in relation to their 2008 activities. Awards will therefore be based on sustained long-term performance, not on short-term revenue generation.

Commenting on this Hampton said: "This approach also means that we now can offer some certainty to our employees to enable them to plan ahead financially.

“Our staff have had to contend with significant anxiety over recent weeks and months over a situation that the vast majority bore no responsibility for creating.

“We have tried, wherever possible, to focus the worst impact of the changes on our more senior staff and, in particular, those in the concentrated areas of our business responsible for the major losses recorded in 2008."

[dish network]

Re: NatWest Bank: Staff Bonuses the facts 2007

I am having problem with my bank, I was just wondering if your site's administrator could help me answer some of the questions that i have. Please give me a link or an email on where can I place my questions because I want this to be private. thanks

[TUTTSI]

Re: NatWest Bank: Staff Bonuses the facts 2007

Send a Private Message to either Amethyst or Tools this is totally private also you could also consider sending a PM to Natweststaffmemeber - who is actually an ex staff member as he may be able to help.




Tuttsi

[Amethyst]

Re: NatWest Bank: Staff Bonuses the facts 2007

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[Amethyst]

Re: NatWest Bank: Staff Bonuses the facts 2007/08/09

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[Amethyst]

Re: NatWest Bank: Staff Bonuses the facts 2007

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[EXC]

Re: NatWest Bank: Staff Bonuses the facts 2007/08/09

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''Any instances where products have been sold and/or leads generated by a member of staff are found to have not been compliant then the member of staff could be subject to disciplinary procedures and part of all of their bonus payment may be withheld. Bonus payments can, where applicable, be withheld for more than one quarter''.

I wonder how many times that happened?

[leclerc]

Re: NatWest Bank: Staff Bonuses the facts 2007

To give some context to the document. TAS is Telephone Advisory Service aka call centres. However, I have had conversations with people who worked selling loans in Lloyds call centres amongst others and they have confirmed to me that they had specific income targets.

In the branches, I know a few members of staff who did take out loans to "help the branch target", only for those loans to then be cancelled the following week so that the target was hit. During that time the way in which bonuses were paid and targets made changed, ie that points were taken off totals if the loan was paid back within 14 days.

Some of the old classic ways of doing it was if someone had a big cheque to pay in but wanted to have the funds instantly, so what happened was a loan with PPI was taken out then cancelled within the 14 days so that the customer was happy and the branch was equally happy. I'm sure Amethyst will post up some branch advisors targets as well and how much they could increase their bonuses as a result(I know YOU have that document) .

What banks did when their own staff did what they were told and ultimately policies changed or they walked a tight rope between long term sickness and reaching targets was similar to communist countries, they had a purge and blamed a bad apple in the organisation. Ultimately, be wary when people start using this excuse because ultimately, the pressure seeps down from Chairman to Regional managers, from Regional managers to area managers, from area managers to branch managers, and branch managers to branch sales staff. Ultimately, the higher up the chain you go the higher the bonus that the manager can get and top performers would have gone on all expenses jollies overseas for awards ceremonies. Targets lead to misselling and the pressures being heaped upon managers were tremendous. You are more or less considered a failure if your team/patch/region is no performing.

[CleverClogs]

Re: NatWest Bank: Staff Bonuses the facts 2007

I wonder whence those documents came - has someone been rummaging through a bank's dustbin? :grin: