The Royal Bank of Scotland has set a new floor for bankers' compensation, announcing the most stringent curtailment of bonus payouts seen to date.
The UK bank announced on February 17 some details of an agreement it has reached with the UK government, which is now its majority shareholder, about compensation for employees.
Some of what RBS released may sound like the bank is stating the obvious no bonuses or pay increases will be made to staff associated with the major losses suffered in 2008 and executive directors will receive no bonus. Directors and executives at RBS have also received no annual increase in salary while other staff will receive below inflation pay rises.
But...
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