Taxpayer-owned Royal Bank of Scotland setting aside 250m for bonuses… despite facing a 500m fine for rigging Libor rates
Bank under pressure to claw back 4m in shares owed to John HouricanHead of the investment bank expected to leave shortly in restructuringRBS 'planning to pay 250m bonuses – 21,000 per employee on average'
in the wake
of the IT glitch. He could have got 2.4m on top of his 1.2m salary but
has now waived his bonus in three of the past four years since taking
over at the bank after its 45bn bailout by the taxpayer.
But Whitehall officials are now pressuring RBS to claw back a deferred share package worth 4m owed to Hourican.
He is expected to leave the company shortly as part of a restructuring of the investment banking arm.
But his departure could also be part
of an attempt to draw a line under the Libor scandal – even though the
settlement with US and UK regulators is not likely to implicate any
Sources close to the bank said the RBS
case was ‘not the same situation as at Barclays’ where disgraced chief
executive Bob Diamond was forced to stand down.
They also insisted the 4m owed to
Hourican is not a ‘payout’ but instead shares he has already earned
since he joined the bank in 2009.
An RBS source also said that no
decision has been made on bonus payments as yet – but a 250m pot would
represent another fall and is well below what rivals earn at other
Shadow Chancellor Ed Balls wrote in the Daily Mirror today: ‘There should be fair rewards for performance. But these bonuses are bound to cause concern after the interest rate fixing scandals.’