Thursday, February 27, 2014

RBS - A clarification

This situation as I understand it is this.

Having announced losses of £8.2bn, RBS now says it must pay generous bonuses to its senior executives to avoid their being poached by other banks.


Phil Beesley said...

The losers at RBS operated under the same conditions (ie state bail out, no come back) as those at other banks. RBS losers might seem more appealing as potential employees than others who discharged money via the urinary tract. The banking crisis remains unfixed.

Increased executive pay is a prerequisite for increased money for board members. Somehow, increased dosh for executive and board rarely converts into money for shareholders. And we are the shareholders, via our pensions and ISAs.

As pension holders and ISA owners, we need to challenge the money extracted by high ranking employees. They are rarely capitalists, rarely holding a stake in the business.

We have all of the evidence of a calamity but we do not know how to fix it.

Richard T said...

But if these are the same senior bankers, or their direct heirs, that brought the bank and indeed the financial system to ruin wouldn't we all be better off if they actually did foxtrot oscar?