Bailed out Royal Bank of Scotland has handed shares worth £28m to nine of its top executives in the latest round of multimillion pound bonus awards by the high street banks.
The precise scale of the payouts at the loss-making bank, 83% owned by the state through £45bn of taxpayer funds, will become clearer next week when the annual report is published.
But stock exchange announcements showed that the nine key staff – including chief executive Stephen Hester – had been handed bonuses for 2010 of £10m in shares with a further £18m in long-term incentive plans that run until 2014 when their exact value will be known.
Everyone\’s getting bonuses in stock. Stock that they cannot sell for some years. So, their incentives are closely aligned with the interests of the shareholders. No more running a scheme that will blow up after the cash bonus has been banked: everyone\’s got to run the bank for the long term.
And, of course, in order for this to actually be an incentive, there has to be real money in the game. No point in offering £50k in stock to someone who already earns £1 million a year now, is there?
So, the bankers\’ bonus problem is solved.
Well, it is if we are to believe all of those who told us that bankers\’ bonuses were the problem. That short term horizons are exactly what led to the crash. We\’ve now got people with long term horizons, exactly what we need.
All that\’s left is people whining about peeps making lots of money.
Len McCluskey, Unite\’s general secretary, branded the payments by the bank – which lost £1.1bn in 2010 – a \”disgrace\”.
And fuck them quite frankly.