RBS to pay $920 million in bonuses for 2013 - Sky News

Wed Feb 26, 2014 6:51am IST

A man walks past a Royal Bank of Scotland building in central London January 28, 2014. REUTERS/Paul Hackett/Files

A man walks past a Royal Bank of Scotland building in central London January 28, 2014.

Credit: Reuters/Paul Hackett/Files

Related Topics

Stocks

   

REUTERS - Royal Bank of Scotland (RBS.L) has received approval from Treasury agency UK Financial Investments to pay about 550 million pounds in staff bonuses for 2013, Sky News reported late on Tuesday.

The news service said the bank is expected to disclose the proposed bonuses when it announces its annual earnings, estimated at a loss of about 8 billion pounds.

The bank's Chief Executive Officer, Ross McEwan, is also expected on Thursday to unveil a strategic review of its investment banking and international operations in which the group could shed up to a quarter of its 120,000-member workforce, according to sources who spoke to Reuters.

The partially nationalised bank is expected to have reduced the 2013 bonus pool by at least 25 million pounds under a commitment it gave 12 months ago to reduce bonuses in subsequent years, Sky said.

British Prime Minister David Cameron last month promised that the government would use its veto power as an 81-percent shareholder in RBS to block any rise in overall pay at RBS's investment bank.

Bankers' pay leapt into British political focus ahead of the annual financial sector bonus season, when the opposition Labour party called on the government to block any attempt by RBS to pay its top staff bonuses worth twice their salary.

Under new European Union rules - which are being challenged by Britain in EU's top court - banker bonuses can be no higher than an individual's fixed salary, rising to double that level if shareholder approval is obtained.

Bonus payments remain a sensitive issue as many Britons still blame banks for the 2008 financial crisis, after which the state was forced to bail out RBS and Lloyds (LLOY.L).

Earlier this month Barclays (BARC.L) prompted an angry reaction from politicians and labour unions after it increased its bonuses by 13 percent to 2.4 billion pounds, even as it announced plans to axe 12,000 jobs.

RBS and UKFI could not be reached for comment outside of normal business hours.

(Reporting by Aashika Jain in Bangalore; Editing by Ken Wills)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Culling Plans

REUTERS SHOWCASE

Drug Approval

Drug Approval

Epirus, Ranbaxy win India approval for arthritis drug copy.  Full Article 

Fresh Demand

Fresh Demand

As mining curbs bite, India offers market to glut-hit iron ore.  Full Article 

Root Out 'Bad Apples'

Root Out 'Bad Apples'

RBI chief calls for cleaning up of banking system.  Full Article 

Android One

Android One

Google launches $105 Android One; eyes low-price smartphone boom.  Full Article 

Cognizant Deal

Cognizant Deal

Cognizant to buy TriZetto for $2.7 billion to boost healthcare business  Full Article 

India-Vietnam Ties

India-Vietnam Ties

India tightens Vietnam defence, oil ties ahead of China Xi's visit.  Full Article 

Antitrust Crusade

Antitrust Crusade

INSIGHT - "Mr. Confession" and his boss drive China's antitrust crusade .  Full Article 

Inflation Eases

Inflation Eases

Aug WPI inflation eases to near five-year low of 3.74 percent  Full Article 

Kashmir Floods

Kashmir Floods

Disease threatens as Kashmir flood waters turn fetid  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage