RBS 'should not be a market leader on pay'

27 January 2011

A British government minister has urged the Royal Bank of Scotland (RBS) to avoid paying out excessive bonuses to avoid the possibility of a public backlash and insisted it should tighten its belt accordingly.

The Press Association reports that Scottish secretary Michael Moore issued a stern warning to the state-owned bank ahead of the next round of remuneration and said the ruling coalition expects RBS to show restraint.

"As the predominant shareholder in RBS, the government expects the bank to be a back-marker and not a market leader on bonuses," he explained. "We want to see bonuses lower this year than last year, that's absolutely clear cut."

Mr Moore's comments came in response to a question from Labour MP for Glasgow Central Anas Sarwar, who pointed out that Financial Services Agency figures revealed the firm had dealt with more than half of complaints "inappropriately".

Earlier this week, Irish finance minister Brian Lenihan hinted that he had dropped plans to tax bonus payouts at a rate of up to 90 per cent.

By Claire Archer

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development