• 26 Jun 2014 at 2:30 PM
  • Banks

Bonus Watch: R.B.S.

Chairman Sir Philip Hampton went seriously off-message yesterday, accepting the somewhat tenuous proposition that the comically-large bonuses of days gone by might have had something to do with the recent recession. On the bright side: R.B.S. has slashed bonuses by 75%, so no one needs fear another economic crisis.

On Wednesday, Philip Hampton, the chairman of the Royal Bank of Scotland, didn’t disagree with concerns raised by shareholders over banker pay, saying that “the structure of pay and bonuses contributed to the financial crisis.”

In response to a question from a shareholder at the bank’s annual meeting in Edinburgh, Mr. Hampton said that compensation in the financial industry “got out of line with the underlying performance of the business.”

But, he added, “I think we’ve done more structurally to address the wrong ways of paying people,” noting that bonuses have declined 60 percent in the past four years at R.B.S. and are down 75 percent in its investment banking business….

R.B.S. set aside £576 million to pay for bonuses in 2013, 15 percent less than a year earlier.

R.B.S. Chairman Says High Banker Pay Contributed to Financial Crisis [DealBook]

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Comments (4)

  1. Posted by Joe Mama | June 26, 2014 at 2:51 PM

    75%??? Should be nothing. Was reading the Geithner tome last night and they were talking about AIG.What fucking nerve. i am in finance and am still disgusted by the balls it takes to try and hand out 185MM in bonuses after you received that number in BILLIONS to be saved. No wonder why the world hates the banking system

  2. Posted by Quant me maybe... | June 26, 2014 at 3:15 PM

    We need to move past this issue and start the healing.

    >Perhaps a candlelight vigil is in order.

  3. Posted by Jessie Stinkman | June 26, 2014 at 3:34 PM

    Have to admit you blew up the house and left a couple of shingles hanging off and you want to be paid and keep you r job?? Fuck that

  4. Posted by Sir Cueball | June 26, 2014 at 4:50 PM

    But, he added, “I think we’ve done more structurally to address the wrong ways of paying people,”

    To be safe, we just stopped paying people.

    Next on the chopping block: leverage and loaning money.