GodStar Posted January 27, 2012 Share Posted January 27, 2012 It's not the fault of this man, or of RBS. The whole world is based on the top men being paid big money to attract the top performers. If you want a top performing guy then you have to pay the market rate (pay plus bonus), otherwise he'll just go to another firm. If he's done a good job in starting to turn round the business and has done everything required of him to earn the bonus, then good luck to him. . Unfortunately they are usually rewarded whether they perform or not- Fred Goodwin left RBS in the year he presided over a 24 billion pound loss- and retired to a £700,000pa pension from them (now us, as we bailed him out). The problem with your argument is that there is no measure of how well this guy is doing compared to how well another guy would do. We're are told that this guy is best for the job but there's more than one person qualified to do any job. Let the fat cats walk to another firm / country, and give the job to others that are equally qualified but will accept a lesser wage. Not everybody does a job entirely for the money. Link to comment Share on other sites More sharing options...
Kadogo Posted January 27, 2012 Share Posted January 27, 2012 It's not the fault of this man, or of RBS. The whole world is based on the top men being paid big money to attract the top performers. If you want a top performing guy then you have to pay the market rate (pay plus bonus), otherwise he'll just go to another firm. If he's done a good job in starting to turn round the business and has done everything required of him to earn the bonus, then good luck to him. Let's imagine that we gave the job of Chief Exec of RBS to some cheap middle-manager, who would only cost perhaps £250,000. He's probably going to do an average job of it, and the RBS would not have turned the corner in the same way and would give the taxpayer little chance of a return on their investment. Personally, I would rather they paid enough to get a good man in the job who knew what he was doing, and have a RBS that had half a chance of being profitable and repaying some of the public investment. What Top Performance has he made during the year ? Increased the Share Price perhaps ? Made a huge profit perhaps ? Link to comment Share on other sites More sharing options...
ANGELFIRE1 Posted January 27, 2012 Share Posted January 27, 2012 I would love to live in a more equitable world, but this is something that is not in the control of the RBS, or the UK Government. Money makes the world go round I'm afraid! Wrong to be honest. WE, you and me and the Government OWN 84% of RBS, therefore at ANY board meeting to discuss wages or bonus payment, with 84% of the vote the Government will would prevail - it's as simple as that. Therefore we have to assume the Government are complicit in the bonus payments. So much for the "we are all in it together" mantra. Angel. Link to comment Share on other sites More sharing options...
GodStar Posted January 27, 2012 Share Posted January 27, 2012 Therefore we have to assume the Government are complicit in the bonus payments. So much for the "we are all in it together" mantra. Angel. Of course they are. Cameron will have called the fat cats and said "sorry guys, i'm obviously going to have to publically denounce your big bonus payments and call you greedy and immoral and call for change, but dont worry im not going to change anything old pal..it'll all blow over in a couple of weeks and you'll be laughing" Link to comment Share on other sites More sharing options...
Frazer1974 Posted January 27, 2012 Share Posted January 27, 2012 Wrong to be honest. WE, you and me and the Government OWN 84% of RBS, therefore at ANY board meeting to discuss wages or bonus payment, with 84% of the vote the Government will would prevail - it's as simple as that. Therefore we have to assume the Government are complicit in the bonus payments. So much for the "we are all in it together" mantra. Angel. You misunderstand me Angel. I was referring to the bigger picture of world business. If RBS don't pay large sums to get a good Chief Exec, he will simply go to another company or another country and get it there instead. Link to comment Share on other sites More sharing options...
PeteMorris Posted January 27, 2012 Share Posted January 27, 2012 Wrong to be honest. WE, you and me and the Government OWN 84% of RBS, therefore at ANY board meeting to discuss wages or bonus payment, with 84% of the vote the Government will would prevail - it's as simple as that. Therefore we have to assume the Government are complicit in the bonus payments. So much for the "we are all in it together" mantra. Angel. Spot on there! Link to comment Share on other sites More sharing options...
mj.scuba Posted January 27, 2012 Share Posted January 27, 2012 How does the bonus compare to the Execs of the other major High Street banks? Link to comment Share on other sites More sharing options...
Tony Posted January 27, 2012 Share Posted January 27, 2012 IIRC, it's about 60% Link to comment Share on other sites More sharing options...
Dingus Posted January 27, 2012 Share Posted January 27, 2012 Unfortunately they are usually rewarded whether they perform or not- Fred Goodwin left RBS in the year he presided over a 24 billion pound loss- and retired to a £700,000pa pension from them (now us, as we bailed him out). SIR Fred Goodwin please. I suppose we shouldn't forget on who's watch the RBS collapse occured. Don't forget Goodwin was a mate of both Brown and Blair who put him forward for a knighthood for services to banking in 2004. I don't remember either of them shouting from the rooftops about bankers salary or bunuses whilst the bankers were raking it in over their time in office. http://www.guardian.co.uk/business/2009/jan/21/sir-fred-goodwin-gordon-brown Like Brown, Goodwin was supposed to be a details man, known for his attention to the every word of a City deal. He was part of the so-called prawn cocktail circuit so assiduously courted by Blair and Brown, and the ultimate acceptance of the pair by bankers such as Sir Fred was crucial in allowing Brown and Blair to claim for the Labour party the mantle of being trustworthy with the economy. It was Blair who knighted him for his services to banking in 2004, but at no stage did Goodwin himself pledge a party affiliation in public. By 1999, Brown had the banker involved in the kind of charitable work mixed with policy reviews he so likes to bestow on friends: Sir Fred chaired a government task force on the work of credit unions and the New Deal programme, talismanic New Labour projects. In 2001, Goodwin was in the contingent of businessmen who attended a pre-election lunch at Chequers aimed at securing the backing of the bankers for that year's poll. This was despite Goodwin disliking the limelight and dismissing "networking". At the height of its success, it will not have gone unnoticed by Brown that RBS channelled £3bn in taxes into the Treasury. Brown and Goodwin did not diverge when RBS performed the takeover of the Dutch bank ABN Amro, the biggest European financial takeover, that proved the undoing of the Scottish bank. But the two fell out last autumn when the government needed banks to own up to the extent of their losses, and Goodwin refused. When RBS was one of three banks recapitalised, Goodwin was sacked. Link to comment Share on other sites More sharing options...
FairDooz Posted January 27, 2012 Share Posted January 27, 2012 Getting paid far more than the lower paid workers is fine. 10 times more, hell even 20 times as much, that's ok. I do rather object to CEOs being paid 100 times as much though. I think that's a little excessive. Agreed. Income inequality is excessive and growing faster in UK than any other rich country, says OECD http://www.guardian.co.uk/society/2011/dec/05/income-inequality-growing-faster-uk It's this fact rather than actual amounts that is causing such resentment. .. and also the fact that the results they've delivered to the country (or even their own companies) is very questionable. Link to comment Share on other sites More sharing options...
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