Royal Bank of Scotland execs are going to receive bonuses, even though the UK government owns 81 percent of the place and it has only earned a profit six out of a possible 24 times since 2008. So this is cause for excitement.
Treasury is poised to approve a back-door bonus scheme at the taxpayer-owned Royal Bank of Scotland that will pay out millions of pounds in shares to top staff. Ross McEwan, the RBS chief executive, is in line to receive £1m a year in shares from 2015 onwards. Dozens of other RBS bankers are already benefiting from the so-called “allowances”, which were introduced to get round new caps on bankers’ bonuses imposed by Brussels. UK Financial Investments (UKFI), the government body responsible for the taxpayer’s stakes in banks, will this week give its formal approval for the payments at the bank’s annual meeting in Edinburgh.