RBS chairman: ‘Bankers are paid too much’

19 January 2011

Many bankers are paid more than their work deserves, the Royal Bank of Scotland’s (RBS) chairman has said.

Sir Philip Hampton told the BBC that pay should be weighted more effectively to reflect the difference in performance between the best and average performing bankers.

He said: “The star quality, as it were, seems to filter down to people who don't seem so star quality. And the disparities between the top stars in the team and some of the journeymen players, if you like, is probably not as marked as it should be.”

The comments, which are to be broadcast as part of a televised interview with the banking chief, follow recent debates between leaders of the UK’s political parties over the size of bonus payouts.

Nick Clegg, deputy leader of the coalition, called for banks to show ‘sensitivity’ to public sentiment when deciding on the size of the pay outs.

David Cameron, leader of the coalition, said that an appropriate balance has to be reached between taxing the banks and rewarding good performance.

He stated: “We’ve got to try to work for that balance rather than just think, let’s take revenge on people because they’ve made us mad as hell.”

The comments came as reports claimed that Eric Daniels, outgoing chief executive officer at the partly-government owned Lloyd’s Banking Group, could receive a bonus worth £2 million for his work in 2010.

By Jim Ottewill

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