RBS tries to dodge the spotlight on fat cat pay as 95 staff get over £1m

RBS revealed on Friday night it has paid packages of more than £1million to 95 staff, with one mystery banker receiving more than £5million and nine paid more than £3million.
The timing of the disclosures, which were only made after the markets closed yesterday, undermined claims by the state-backed bank that it is being more transparent on pay.
RBS also tried to dodge the spotlight by making its revelation on the same day as Barclays gave details of its multi-million pound packages for top staff, with 428 high-flying employees there receiving more than £1million.

RBS boss: Stephen Hester gave up his bonus for 2012 but received a £1.2million basic salary

Barclays chief executive Antony Jenkins was awarded a £2.6million package, including a £1.47million long term incentive award.  
The bonanza at both banks came after they were forced to pay hefty fines for Libor interest rate-rigging and to make multi-billion pound write-offs for PPI mis-selling.

 

RBS has also been in the firing line for IT meltdowns that have played havoc with customer accounts, the most recent of which happened only this week.
Details of the hundreds of casino banking millionaires – who are cashing in despite the economic downturn – were given in the two banks’ annual reports.
The documents for the first time broke down the number of people in different wage brackets.
Liberal Democrat peer Lord Oakeshott said: ‘RBS paid their four fattest cats £21million of our money last year, with 95 people paid over a million.
‘They’re the best paid public sector workers by a mile, in a bank that keeps letting down the public by failing to lend. Let’s end this nonsense and nationalise RBS now.’
Stephen Hester, the chief executive of RBS, gave up his bonus for 2012 but received a £1.2million basic salary, £420,000 cash in lieu of pension and a long term incentive plan that could deliver up to £1.6million in three years’ time.
In addition, this week he received a £700,000 share windfall from a bonus awarded in 2010.
Ellen Alemany, the boss of the US division, outstripped him with £3.8million pay and bonus and a long term incentive that could yield almost £1million.
Some 368 of senior ‘code’ staff – who could have an influence on the risk profile of the bank – received average pay and perks worth £701,000.
But the average member of staff received just £34,000.
Although the bank argues it has scaled back on pay and bonuses, these payments come after it unveiled a £5.2billion loss for last year.
They are also being doled out amid calls for RBS to be dismantled from Sir Mervyn King, who this week urged the government to ‘face up to reality’.
The Bank of England governor said ministers should split RBS into a good bank to lend to the economy and a bad bank containing all its toxic assets and loans.
RBS (up 3p to 306.2p) has insisted it is showing restraint on bonuses.

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