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Senior RBS bankers resign over bonus frustrations

Two of Royal Bank of Scotland’s most senior bankers have resigned due to frustrations over the taxpayer-backed bank’s bonus policy, according to reports.

Meanwhile, Barclays’ bosses John Varley and Bob Diamond are set to forgo cash bonuses for 2009 in a bid to fend off public backlash over multi-billion pound payouts for the bank’s staff.

According to the Telegraph, RBS head of trading Steve Ashley and senior salesman Chris Fleming quit last Friday in part due to RBS being forced to scale back bonuses due to the state hand out.

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There are 9 comments at the moment, we would love to hear your opinion too.

  1. I worked with both these guys before I left RBS. Steve Ashley will be a big loss as he was a tremendous Trader and leader of Traders. Chris Fleming on the other hand was always overpaid for doing a very mediocre job so I can’t see him being a particularly big loss. I guess it’s just the natural Darwinism of the financial markets in action.

  2. Pete Drewienkiewicz 15th February 2010 at 11:11 am

    re: Fleming:-

    RBS tug of war team’s loss – is trading floor canteen queue’s gain

  3. No doubt both will walk into highly paid jobs elsewhere but surely the message should be returned to shareholders and indeed investors. Too many people in the city are been rewarded for short termism and the losers seem to be the shareholders and investors. I’m not jealous of what these guys earning lots of money, I would just like to see a greater return the shareholders that are at present not receiving any dividends and have seen their share price crash to almost nothing. So why should the bank be paying billions in bonuses to traders and bosses and got us into this situation in the first place. It is also notable that the majority of shares in big companies are owned by fund managers and therefore vote on the remuneration packages of board members so it becomes an old boys network. You could even think of this as a form of insider trading but just around people’s pay packet, it like you give me a pay rise and in return I’ll give you a pay rise etc. I’m sure that someone called market forces ha ha But where the return for investor and shareholders I ask

  4. On the grounds that these guys have jumped rather than being pushed you have to ask the question as to whether or not they are taking their liabilities with them?

    Will their new employers ask that question………I do not think so

  5. Following on from Peter Herds comments:

    Will only be a matter of time before we have a test case in the courts on ‘reasonableness’/breach of fiduciary (or Trustee) duties – ie class action vs fund manager and/or pension fund Trustees over inaction on executive pay when returns have been either negligible or negative!!

    Funny isn’t it that all the bankers who said they’ll leave London because of 50% tax charge/loss of bonuses are mostly still here … nowhere to run to, eh, boys??

    Global banking IS A MESS (period) and it will get sorted by hook or by crook (ooh, how apt (tic)) – this may follow a second slide through double-dipper!!

    Joy!!

  6. I worked with Chris Felming also (very briefly at UBS) he is no loss to anyone and a bit of a twit. although i think the letter a would be more appropriate in the word twit!

  7. The management have to take responsibility for the consequences of their allowance of recklessness strategies. If the result is a much weakened RBS they can console themselves with the thought that that’s better than there being no RBS at all. And they’ve still got their nice huge salaries.

  8. Whether any of these individuals are talented or not belies the fact that their vast remuneration packages have been paid without them taking any significant risk.

    I beleive in capitalism. Without free access to capital – be it equity or debt – we would still be in the middle ages. However the highest rewards should go to those who take the risk of investing their own hard earned cash into building new businesses. The trader is playing with other people’s money and the risk he takes is not his. The worst that can happen is he loses his job, and then no doubt pops up again in a similarly high paid position.

    This is a creed that seems to have grown out of all proportion over the last 20 years and pervaded into every boardroom across the commercial and industial landcape where these people are paid stratospheric packages out of all kilter with the job they do and the risk they take. Don’t even start me on the locked in rewards for doing a crap job!

    It is even now spreading into the state sector where local authority CEO’s (they were called Town Clerks in my day) are paid hundreds of thousands of pounds a year to empty the bins and make sure we are all ethnically diversified.

    It is all giving capitalism a bad name. Pay the highest rewards to risk takers – not administrators, which is at the end of the day what traders are, however well some may do it.

  9. I think we need to remember that every body is replaceable, so the new guys could easily be more productive, than than those that have left, The King is dead, long live the King !!!! ALWAYS REMEMBER THAT.

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