Staff at Coutts have reacted furiously after learning their bonuses have been slashed by 40% this year.
The 40% figure is much higher than the 15% fall in bonus payments at parent group RBS.
‘RBS has only cut its bonuses by 15%. And for reasons we don’t understand because Coutts is only one of two divisions that made an adequate return on equity, our bonus pool for Coutts as a whole has been cut by 40%,’ an internal source told Wealth Manager.
‘I don’t understand why Coutts is cutting them so much. I got a better rating this year than last year, and my bonus is down.’
The source said this has triggered a ‘high level of dissatisfaction’ because ‘everyone has been affected’.
‘We’ve been told there have been cuts across the board, across the products and services area, and the front office.’
The source said relationship managers and portfolio managers have also seen their payouts reduced.
RBS recorded a pre-tax loss of £8.2 billion in 2013, while RBS Wealth, which includes Coutts and Adam & Co, saw its operating profit fall 10% to £221 million.
The source believes the cuts were because RBS is worried about losing key people in the businesses it is looking to sell.
‘That makes no sense, because it’s just as dangerous to be losing people at Coutts as it is to lose people in the businesses you’re selling.’
Coutts declined to comment.