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Categories:Politics,Regulation

Miliband calls on PM to stop RBS chief getting bonus

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Labour leader Ed Miliband has called on the Prime Minister to intervene and stop RBS chief executive Stephen Hester taking his bonus which is expected to be around £1.6m.

The call comes after Miliband promised last week to test the David Cameron’s conviction to take on what the Conservatives have dubbed “crony capitalism”,

Speaking to the BBC, Miliband said: “I don’t think he should be getting his bonus. You know the state is still owning a share in the Royal Bank of Scotland, taxpayers are still, you know, footing the bill for what’s happening at the Royal Bank of Scotland.

“You know if responsibility means anything, I don’t think he should be getting his bonus. And the prime minister, if he’s true to his word, would exercise his responsibility to do something about that.”

In November, Mr Hester told the Treasury select committee he would not pay “a penny more than we need to” in bonuses to staff. The BBC says the bank is set to announce a bonus pool of about £1.3bn. Last year that figure was £950m.

However, The Telegraph says other reports at the weekend suggest investment bankers at RBS are to share a £2.5bn pay pot, taking an average of nearly £140,000 each. The £2.5bn includes all pay and perks and an estimated £500m in bonuses.

Both RBS and Lloyds Banking Group have not paid cash bonuses in excess of £2,000 in the past two years, while both firms have announced a raft of job cuts.

The Government  is expected to unveil a review on executive pay and transparency on Tuesday.

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Readers' comments (6)

  • Powerless!

    It's not just the FSA & the UK government - it's EVERY government and regulator around the world - completely powerless against this Corporate Olagarchy of THE BANKSTERS that has taken over our world.

    THIS is government OF the banks, FOR the banks and BY the banks.

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  • Maybe Cameron can stop the pay of most of the Labour Shadow Cabinet because of the mess Gordon Brown got us in!!!!!!!

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  • spineless & inept as well as being utter lapdogs of the financial industry -- I'm talking about Cameron et al. It's time this debacle were taken to the bankers involved personally and I don't mean with them hiding behind their granite portals.

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  • This situation should never arisen! At the time of the bail-out it was the duty of Brown ,Balls and Darling to ensure abolutely No bonuses until the tax payers receive their money back in Full! Were you not a member of that government Mr.Milliband?

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  • the corollary is to suggest that all other employees of the state also forfeit their bonuses ie all employees of RBS, LBG, NHS, Police< Firebrigade, Civil Service etc

    Utter nonsense

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  • This is government and regulation.... OF the Banks, FOR the Banks and what's more BY the Banks.

    ALL of the politicians are powerless across the globe in the face of their "Paymasters General" on Wall Street and the Square Mile.

    Part of the problem in Greece - is not only the corruption that's gone on - but also the fact that Wall Street insisted they buy toxic CDOs in exchange for their input into their economy.

    French banks are on their knees also as their purchases of these blatant Ponzi schemes are coming back to haunt them.

    Now it's payback time and the predators know where the dead bodies are lying, they are going after the suckers - to build up next years bonus package.

    Never mind if it brings the whole sorry mess collapsing down on top of them - they couldn't give a rat's behind!

    History will look back on all this in disbelief!

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