RBS Boss to get £1m share bonus?
Discussion
http://news.sky.com/home/business/article/16157101
First off, happy to be given the full facts if the article is one-sided or inaccurate, and I really don't have a chip on my shoulder about any/all bankers - I have a simple view which is that if it isn't taxpayers money, do what the hell you want with it.
So... what has this chap actually achieved to deserve this bonus?
First off, happy to be given the full facts if the article is one-sided or inaccurate, and I really don't have a chip on my shoulder about any/all bankers - I have a simple view which is that if it isn't taxpayers money, do what the hell you want with it.
So... what has this chap actually achieved to deserve this bonus?
paddyhasneeds said:
http://news.sky.com/home/business/article/16157101
First off, happy to be given the full facts if the article is one-sided or inaccurate, and I really don't have a chip on my shoulder about any/all bankers - I have a simple view which is that if it isn't taxpayers money, do what the hell you want with it.
So... what has this chap actually achieved to deserve this bonus?
Good question and quite valid, given that 83% of if is taxpayers money.First off, happy to be given the full facts if the article is one-sided or inaccurate, and I really don't have a chip on my shoulder about any/all bankers - I have a simple view which is that if it isn't taxpayers money, do what the hell you want with it.
So... what has this chap actually achieved to deserve this bonus?
Apparently he has stopped the bank from slipping further into the mire, though that may have happened in any case.
paddyhasneeds said:
anonymous said:
[redacted]
Of course I would. And once again, nothing against Hester, you don't set your own wages and bonus so someone must have signed off on it.I'm not really sure you can, or should, pay someone a bonus for "taking enough s
t" though, can you?Do the shareholders have any direct say?
I suppose the criteria within the contract were met?
paddyhasneeds said:
Presumably the bonus criteria were agreed contractually in advance? I'd be interested to know what they are.
It's easy to yell thieving bankers, but surely a bonus is separate from salary, and by definition is a reward for achieving something specific and measurable?
All in last year's Annual Report.It's easy to yell thieving bankers, but surely a bonus is separate from salary, and by definition is a reward for achieving something specific and measurable?
Bonus to be paid in shares, not share options. Shares will be set aside at end of performance year and will be subject to clawback until 50% shares vest after 12 months and 50% after 24 months. All shares to be held for 6 months post vesting.
Maximum bonus to be 375% of salary. Salary is £1,219,000.
Performance measured on a scale of 0-100%. 4 areas assessed:
RBS Annual Report said:
• Relative Total Shareholder Return (“TSR”) (25%);
Relative TSR provides a direct link between the rewards received by executives and the returns achieved for our shareholders. For this reason this metric has been retained unaltered from previous years.
• Core Bank Economic Profit (25%);
Economic Profit measure will focus on the
Core bank. Economic Profit, being a risk-adjusted financial measure, is consistent with adherence to the FSA Code, and also provides a balance between measuring growth, and the cost of capital employed in delivering that growth. At the end of the performance period for these awards, the value of the Group will be largely determined by the ability of the Core bank to generate enduring value for shareholders. For this reason, Economic Profit is based on the core bank.
• Balance Sheet & Risk (25%)
Resolution of Non-Core and development of the Group’s risk profile consistent with being a highly rated standalone bank are fundamental to our strategy. These are therefore measured under a separate Balance Sheet and Risk measure under the LTIP.
• Strategic Scorecard (25%)
To ensure that the Group is positioned to deliver sustainable value for shareholders beyond the initial turnaround timeframe, the balanced scorecard rewards management for delivering a robust basis for future growth in terms of the strength of our franchise, efficiency, reputation, and the strength and engagement of our employees.
Finally, there is an underpin whereby awards will only vest if the Committee is satisfied that risk management during the performance period has been effective and that financial and non-financial
performance has been satisfactory in line with the Group’s Strategic Plan. In assessing this, the Committee will be advised independently by the Board Risk Committee.
By my calculations, I think the Board awarded Hester 21/100 for 2011.Relative TSR provides a direct link between the rewards received by executives and the returns achieved for our shareholders. For this reason this metric has been retained unaltered from previous years.
• Core Bank Economic Profit (25%);
Economic Profit measure will focus on the
Core bank. Economic Profit, being a risk-adjusted financial measure, is consistent with adherence to the FSA Code, and also provides a balance between measuring growth, and the cost of capital employed in delivering that growth. At the end of the performance period for these awards, the value of the Group will be largely determined by the ability of the Core bank to generate enduring value for shareholders. For this reason, Economic Profit is based on the core bank.
• Balance Sheet & Risk (25%)
Resolution of Non-Core and development of the Group’s risk profile consistent with being a highly rated standalone bank are fundamental to our strategy. These are therefore measured under a separate Balance Sheet and Risk measure under the LTIP.
• Strategic Scorecard (25%)
To ensure that the Group is positioned to deliver sustainable value for shareholders beyond the initial turnaround timeframe, the balanced scorecard rewards management for delivering a robust basis for future growth in terms of the strength of our franchise, efficiency, reputation, and the strength and engagement of our employees.
Finally, there is an underpin whereby awards will only vest if the Committee is satisfied that risk management during the performance period has been effective and that financial and non-financial
performance has been satisfactory in line with the Group’s Strategic Plan. In assessing this, the Committee will be advised independently by the Board Risk Committee.
Halb said:
It gets signed off by committees doesn't it? Old boys rubber stamping them for each other?
Do the shareholders have any direct say?
I suppose the criteria within the contract were met?
Yes + a little squeeze from CameronDo the shareholders have any direct say?
I suppose the criteria within the contract were met?
Do we f#^%k, but we will do very soon.
I doubt it very much, but then banks and big business like to use shareholders money to reward failure. Most likely find in this case the losses have been less then anticipated- brilliant.
This might help?
http://www.thisislondon.co.uk/standard/article-240...
This stood out for me above anything:
In three years, Hester has shrunk this balance sheet by some £600 billion
But then I suppose anyone could have done that. George Monbiot said so.
tuffer said:
What people should be really concerned with is the salaries that RBS are offering to new hires. Just saying.....
Do they still have teams of highly paid contractors doing the jobs that the FTEs used to? You also have to look at the management structure - anyone worth their salt would have left in the last 4 years, so would you really want to work at RBS, knowing your bonus would be capped, and you'd be working with the dregs of banking management?ukwill said:
groak said:
I bank with RBS. It's shyte. And that strange baldy dude isn't worth tuppence.
strange baldy dude 
why do you remain with them if they're shyte?
2) Fee and charge cost of moving loan.
3) General apathy re. banks/banking
BUT: I could DEFINITELY do baldy's job better than him.
Bing o said:
tuffer said:
What people should be really concerned with is the salaries that RBS are offering to new hires. Just saying.....
Do they still have teams of highly paid contractors doing the jobs that the FTEs used to? You also have to look at the management structure - anyone worth their salt would have left in the last 4 years, so would you really want to work at RBS, knowing your bonus would be capped, and you'd be working with the dregs of banking management?groak said:
1) Proximity of branches to cash businesses.
2) Fee and charge cost of moving loan.
3) General apathy re. banks/banking
BUT: I could DEFINITELY do baldy's job better than him.
The first 3 points sound like you really can't be arsed. Meaning you must be somewhat comfortable with their shyte. If they were that shyte, you'd have moved by now.2) Fee and charge cost of moving loan.
3) General apathy re. banks/banking
BUT: I could DEFINITELY do baldy's job better than him.
Yes, I think you could definitely do baldy's job better than him as well. So could I. And my wife.
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