LONDON May 11 Royal Bank of Scotland on
Thursday said it would shrink incentives for top executives and
streamline its pay policy, as the bank seeks to align pay more
closely to good behaviour and performance.
The bank said shareholding requirements for executive
directors would rise significantly, from 250 percent to 400
percent of salary for the chief executive and from 125 percent
to 250 percent of salary for the chief financial officer.
It also said it would reduce the maximum long-term bonus by
up to 40 percent, in line with a growing consensus among
investors on the need to restrain executive pay.
RBS said its pay policies had become too complex in the past
"The time is right for a new, simpler approach, developed
specifically to align with RBS’s culture and our thinking on
pay," Sandy Crombie, the bank's senior independent director,
said in a speech to be delivered at the bank's annual general
meeting in Edinburgh.
(Reporting By Andrew MacAskill and Lawrence White. Editing by