Home Business NewsFinance News Should RBS staff get bonuses 2x salary? Labour says no, tells Osborne to block

Should RBS staff get bonuses 2x salary? Labour says no, tells Osborne to block

by LLB Reporter
15th Jan 14 8:52 am

Banker bonuses are one of the most contentious issues in British business at the moment, and those at 81%-government-owned RBS even more so.

So the news that RBS is planning on paying staff bonuses worth two times their salaries will no doubt ruffle some feathers among some of you – and you’re not alone.

Labour is calling on George Osborne to block the bonuses, which would anyway contravene the new EU limit that caps bonuses at one year’s pay were it not for a caveat.

That caveat lets banks pay more than one year’s pay as a bonus, but only if the proposed bonuses get shareholder approval.

So as the majority shareholder in RBS, the government could block the bonuses.

The Financial Times reports that Labour will argue that the bonuses should not be permitted “at a time when ordinary families are facing a ‘cost-of-living crisis’”.

So will the Treasury block the bonuses? Only time will tell – but it’s worth bearing in mind that it has already launched a legal challenge against the EU’s right to limit banker bonuses in any capacity.

Should the government block RBS bonuses being 2x salary? Let us know on LinkedIn

 

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