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RBS set to pay out £250m in bonuses

RBS logo large 440

The Royal Bank of Scotland is set to pay out £250m in bonuses to staff at its investment banking arm this year.

The FT reports the money will go into the division implicated in the Libor rigging scandal with RBS expected to face fines of around £500m in the coming weeks.

Last year the state-owned lender faced a political backlash after awarding chief executive Stephen Hester a £1m bonus, which he later gave back.

Labour Treasury select committee member Pat McFadden told the FT there will be “enormous anger if UK taxpayers pick up the tab for the individual sins of traders who were trying to rig Libor rates”.

The paper reports that RBS is cutting the overall bonus pool and enforcing tougher clawback rules.

Its total payouts are expected to be more than a third lower than last year’s £390m total and a fraction of rivals’ payouts. However this year’s bonus budget will not be directly comparable because the bank has moved international staff into another division.


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There are 5 comments at the moment, we would love to hear your opinion too.

  1. Roman Duzinkewycz 29th January 2013 at 9:08 am

    Con artists – and very good at it.

  2. Appauling, until the British public have been repaid every penny they bailed out RBS with.

  3. hopefully the claw back is in the tune of £45 billion for the last 10 years of mismanagement, inepitude and stupidity in not due due diligence on their take over plans.

    £250 million paid back to the government taxpayers should be more like it.

    as they said in Barclays, if you dont like the new rules and regulations you can hack off.

    rdr has made a lot of us redundant what about them in the investment bank of rbs,

    their bonus should be reduced the way the shares were reduced, every bonus earned it is reduced by 10% and that is after they pay the 50% tax on it!!

    shareholder down the pan, my great great great grandchildren might see some inheritance.

  4. After a further 18 months of bolstering the bank’s balance sheet, senior RBS figures believe the bank will be returned to the private sector in four share offerings worth more than £10bn each over 10 years, reports The Times.

    wonder if the investment bankers in this bank will be taking up these share offerings – the way they did ipo in the past would wonder why you would even bother, you bid, you ask, you receive and then they reduce your holdings by 10:1, a great way to lose wealth.

  5. When my kids grow up they want to be banking failures and get paid mega-bucks for losing money.

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