RBS’s losses for 2011 could be reduced by 1/3 by withholding bonus’ due to the financial straits it is in.
|Bank||% public ownership||Net income 2011||Bonus 2011-12|
|RBS||83%||£(1969) million||£ 780 milion|
|Lloyds||40%||£(2714) million||£ 300 million|
Note numbers in nice brackets () represent negative numbers, so that is LOSSES of 2 billion and 2.7 billion.
Stephen Hester = £963,000 bonus alongside his over £1 million salary, bonus is based on 25% appraisal rating.
Staff = 4,800 jobs lost;
Shareholders = 40% wiped off shares (80% nationalised using borrowed money at approximately 3% interest rate).
RBS reported a 1.4 billion pounds first-quarter loss compared with a loss of 116M£ for the same quarter last year largely due to a £2.5bn change in the value of the bank’s debt. It was also forced to compensate customers mis-sold payment protection insurance at a cost of £125m.
Lloyds bonus is lower because they are not do not have an investment banking operation. Losses are large due to cost of ‘restructuring’.
Filed under: Banking