UKFI To Vote Against Any 200% Bonus in RBS

Share On Facebook
share on Linkedin

The UK Financial Investments Limited, Britain’s manager of Government assets in the Royal Bank of Scotland (LSE:RBS) will vote against any proposal which would give bonuses to the bank’s executives up to twice as much as their salaries, the Board of the Royal Bank of Scotland told Friday.

81-percent government-owned RBS had earlier contemplated, in line with the trend amongst its major competitors, to provide for a 2:1 ratio of remuneration as early as February this year.

New EU rules however, have now decreed that any such increase in remuneration beyond 100 percent of basic pay will have to be approved by its shareholders; hence any such proposal will fail following the UKFI’s statement on the issue and will no longer present it during the bank’s annual general meeting which will be held on 25 June 2014.

The RBS Board, nonetheless, insists that “the best commercial solution for RBS is to have the flexibility on variable to fixed pay ratios that is now emerging as the sector norm.”

“This would also allow RBS to maintain the maximum amount of compensation that could be subject to performance conditions including claw back for conduct issues that may emerge in future.”

The RBS Board said it will try to mitigate concerns of “commercial and prudential risk” by opting to a 1:1 compensation ratio.

Shares of RBS were up 0.3 percent to 304.70 pence by 10:14 AM GMT, following the announcement.


CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

Do you want to write for our Newspaper? Get in touch:

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20210419 00:18:33