Why the directors of are failed banks getting bonus payments, or as they like to call it “AWARDS” awards for what? Everyday people go out to work and do a hard days work and get paid for it, and we don’t get “awards”, so why should they?
The government has to stop this obscene and completely abuse of public money, and stop it now, we hear about this government cutting this and that to pay back deficit’s so why not stop this obscene gesture the bankers take for granted and use that money towards the deficit, only yesterday northern rock another tax payers bail out bank paid themselves a bonus, not an award a bonus,(at least they didn’t try to dress it up as an award),this really is an insult to the tax payer and a slap in the face to people who have had to take a pay cut, come on Osborne get off your butt and do something to stop these obscenities.
Royal Bank of Scotland has awarded its top nine directors bonus packages for 2010 worth a combined £28m, including a £6.5m deal for chief executive Stephen Hester.
The state-backed lender yesterday disclosed that the top team will share £9.6m in bonuses and can earn a maximum £18.4m under the long-term incentive plan (LTIP) if they hit performance targets over three years.
Mr. Hester’s £4.5m LTIP comes on top of his £2m bonus and £1.2m salary, both of which have already been announced, taking his whole package to £7.7m.
Mr. Hester’s deal, which is entirely in stock and will not be paid out before the end of 2012, is less than the £9m awarded to Bob Diamond, Barclay’s chief executive.
Stuart Gulliver, HSBC chief executive, received £6.1m in pay and bonus and is eligible for a further £8.75m under the bank’s LTIP.
RBS’s awards were made at 44.49p and will increase in value if the shares start to rise. For every 1p increase, the state – which owns 83pc of the bank – benefits by £900m?
Bruce van Saun, RBS’s finance director, received the second largest package – worth £4.14m.
John Hourican, chief executive of RBS’s investment bank, earned a £2.5m annual bonus. The two co-heads of Barclays’ investment bank each received a £10m bonus last year.
An RBS spokesman said: “These awards follow exhaustive consultation with our shareholders and we believe they appropriately balance demonstrating restraint while remaining fully supportive of our leadership through the RBS turnaround plan.”
Details of the pay packages came as The Daily Telegraph uncovered new evidence about the scale of RBS problems under the bank’s previous management even before the disastrous acquisition of ABN Amro in 2007.
An analysis of the Government’s asset protection scheme (APS) showed that less than one fifth of the “toxic assets” RBS placed in the £282bn taxpayer-backed insurance fund came from ABN. The research puts the lie to the argument that RBS was hobbled by a single misjudgement.
Problem debts acquired with ABN accounted for just £48bn of the whole APS portfolio, set up in December 2009, or 17pc. By comparison, £120bn of the “covered assets” came from RBS’s own investment bank and £57bn from UK real estate
One former ministerial aide said officials had been astonished when they realised the bank’s woes were not just the result of one bad deal, but what he described as a “whole bank issue”.
Under the APS, RBS takes the first £60bn of losses and 10pc of any further loss – leaving the taxpayer liable for a potential £200bn. The Government injected another £25.5bn of equity into the bank at the same time as launching the APS, taking the state’s total investment to £45.5bn.
RBS revealed in its 2010 results that £38.7bn of the “first loss” has already been used up but that the “covered assets” have been reduced to £195bn “due to run-off of the portfolio, disposals, early repayments and maturing loans”.
However, the riskiest loans remain in the scheme. When it was established, the APS offered an effective £128bn subsidy by reducing risk weighted assets (RWAs). Last year, the subsidy was still £106bn, reducing the group’s RWAs to £462bn.