RBS bonuses announced
Why should we pay? say campaigners
The Royal Bank of Scotland will announce a bonus pool of up to £300 million today, despite recording losses of up to £4.4 billion last year.
The move comes at the end of a disastrous year for RBS, which is 82% owned by the taxpayer. Last year RBS set aside £1.7 billion compensation for PPI mis-selling, was fined £390m for rigging Libor interest rates, on top of making a loss of up to £4.4 billion.
The bank was also forced to commit another £175 million to compensation claimants after a computer failure in June 2012 locked customers out of their accounts, as well as a further £50m for mis-selling interest rate swaps to small businesses.
This year’s bonuses represent a reduction compared to 2012, when £785 million was paid to employees at RBS, equivalent to 39% of the group’s losses.
Despite this reduction, campaigners were angered that any bonuses were paid at all this year, given the scale of the bank’s losses and the number of scandals and fines that have rocked the bank this year. There has also been outrage over Stephen Hester accepting a £2million bonus for 2010, given that Libor rigging is known to have been occurring at RBS under his watch.
Reacting to the announcement, Laura Willoughby MBE, Chief Executive of campaign group Move Your Money, said:
“Why should ordinary customers and taxpayers pay for RBS’ bonuses when the bank has failed to meet even the most basic standards of performance, customer service and integrity?”
Laura continued: “Hester is pocketing £2million from the taxpayer to pat himself on the back for a year in which RBS made huge losses and was rigging the financial system, all whilst he was at the helm. Regulators and politicians have proved toothless in curbing these excesses.
It is high time that RBS, NatWest and Ulster Bank customers voted with their feet, and moved their money to a bank that values its customers and supports the UK economy.”
Find out where to move your money to and read more about banking in our banking industry report.