Royal Bank of Scotland has paid 10 executives a total of £3.4m in share allowances, following the introduction of the EU cap on bonuses.
The Daily Telegraph reports the bank has awarded just under one million in shares to management, with payments worth between £200,000 and £533,000.
Share allowances do not count towards the EU bonus cap, which limits bonuses to 100 per cent of salaries or 200 per cent with shareholder approval. The Treasury vetoed raising the cap to 200 per cent in April.
The allowances cover the first eight months of the year and will be paid out over a five-year period. They are not covered by new Bank of England rules which allow bonuses to be clawed back.
Earlier this year European regulator the European Banking Authority raised concerns that share allowances did not comply with new rules on variable pay.
But Prudential Regulation Authority chief executive Andrew Bailey has said share allowances are the “least worst alternative” to bonuses.