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View the article online at http://citywire.co.uk/wealth-manager/article/a659490

RBS execs to divvy up £6m in share awards

by Sarah Miloudi on Feb 18, 2013 at 07:37

RBS execs to divvy up £6m in share awards

A handful of Royal Bank of Scotland executives are to share rewards of up to £6 million - just weeks after the bank's stinging £390 million rate rigging fine.

According to The Times, the share awards will be divided up among a small number of staff, but could stoke further controversy coming in the wake of the penalty from UK and US regulators.

Moreover, the staggering messages about Libor manipulation at RBS - including internal notes like 'It's amazing how Libor fixing can make you that much money' published on the CFTC website - are still fresh in the minds of shareholders and members of the public.

Stephen Hester, the bank’s chief executive, could also come under pressure for the £780,000 of shares he is due to receive next month.

Although Hester (pictured) will take delivery of the shares in March, they form part of his 2010 bonus award.

4 comments so far. Why not have your say?

Nil Satis

Feb 18, 2013 at 09:25

http://www.guardian.co.uk/business/2013/feb/12/banker-millions-wont-save-lives?CMP=twt_gu This sums the situation regarding exec pay much better then I ever could

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wrywriter

Feb 18, 2013 at 10:01

This Bank obviously has a unethical culture and by the way it is still behaving with respect to the derivatives scandal it has a long way to go. Rather than reward failure, CEO Hester should be relieved of his post. He has not suceeded in the cleaning up the RBS culture which must be step 1 in rehabilitating this bank. Libor manipulation and the shameful ethics surrounding selling derivatives to small business were all taking place on his watch. Hester must go!

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Teddy

Feb 18, 2013 at 10:36

Stephen Hester has done a great job of stabilising the ship that was on the verge of sinking and deserves every penny that he earns, in fact he should be paid 5 times more in my view. That said, I agree the culture has not altered materially and beneath him you still have those hell bent on the growth trajectory from the old regime.

Famous quotes : Mike Morley of Coutts says " Over engineered risk processes also seem to hold us back from delivering the client experience". What does that mean.

Rory Tapner, CEO Wealth says " We have to increase the number of cash funnels into the business". What does that mean.

This is still prevalent across the business and the "one blink and too many steps backwards will be taken" theory is still at large and competing for space. Perhaps Mr Hester has done all he can and cannot hold the horses back and maybe a more traditional banker such as Sir Peter Burt, with team, should be brought in to add a little gravitas. Time alas is running out for Mr H.

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Keith Cobby

Feb 18, 2013 at 11:06

I cannot get worked-up about this LIBOR rigging. It would only have had a tiny, probably unmeasurable effect on my mortgage. RBS are amateurs, the real villains are the Government and the BoE.

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