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Thursday, December 03, 2009

The RBS Bonus Row

The row over the proposed bonus payments for RBS executives and management doesn't look like it's going to go away anytime soon.

RBS, the taxpayer owned (70%) wreck of a once fine bank, wants to pay its senior staff £1.5BN in bonuses this year (they are expecting to make £6BN in profits this year).

The government, playing to the gallery, has insisted that it has a say in how much should be paid and have threatened to veto it. The board, not unreasonably, point out that it is for them to make that judgement and have threatened to resign.

As ever with Brown and his lackeys, whatever they touch simply turns to shit. However, this is not the end of this farce.

Lord Mandelson, the Business Secretary, has come out on the side of the board.

He is quoted in The Times:

"I understand the point of view that RBS directors are expressing. They have to remain competitive in the market in recruiting senior executives.

That is why it's important that all the banks are equally restrained and RBS is not singled out, but nobody is suggesting that that will happen

In other words, don't shoot yourself in the foot just to play to the gallery.

The trouble is, Brown loves to play to the gallery.

1 comment:

  1. Good. resign then and leave the job open to someone who isn't a fatcat whiny brat!

    They want 25% of profits awarded as bonuses? How about no.