RBS to limit bonuses

[BigJonMcQuimm]

Oh FFS, even Obama is moving away from this

[andy-xr]

And they're to be paid in shares. So when they're fully nationalised that'll be interesting

[Mx_Stu]

I've just seen this. Will be interesting to see whats announced in the budget with regards a new approved share scheme to try and get the bankers back onside.

[BigJonMcQuimm]

I presume they mean share options... ?

Er... yeah .. I would hang around for them!

[Fittster]

From a practical point, do many RBS employees have alternative employment prospects if they don't like the new deal?

From a political view point it was the only option, can you imagine the head lines if billions of pounds had been paid out?

[BigJonMcQuimm]

Fittster said:

From a practical point, do many RBS employees have alternative employment prospects if they don't like the new deal?

From a political view point it was the only option, can you imagine the head lines if billions of pounds had been paid out?

I know a number of traders at RBS who made good profits last year...

Yes some of them have already been approached about new opportunities.

[JRM]

Fittster said:

From a practical point, do many RBS employees have alternative employment prospects if they don't like the new deal?

Well this is the point, the good staff might well do, yes. The crap ones won't and that's all they will be left with if they don't pay them market rate

[Muncher]

Is this a move that will condemn the bank to failure sooner or later? How many staff will be trying to jump ship right now?

[Randy Winkman]

Ken Clarke is pleased - he's wondering why the Government dithered over it.

[Jules360]

Bonus pool down £2bio on last year. Assuming 75% of bonuses get spent, thats £1.5bio less money going into the economy on goods and services. Well done the journalists and their scaremongering.

[EdJ]

Randy Winkman said:

Ken Clarke is pleased - he's wondering why the Government dithered over it.

Ken Clarke is more left wing than Tony Blair.

[NoelWatson]

Fittster said:

From a practical point, do many RBS employees have alternative employment prospects if they don't like the new deal?

Depends what they are currently doing, but I reckon the more senior ones will.

[MTY4000]

Disasterous move for the tax payer. We have an investment in RBS, following this dumb move the revenue generators for the profitable business lines will move to another bank as soon as the opportunity arises (this was a possibilty before, a certainty now). Not good news for our longer term investment in RBS, or the employment prospects of the workers at RBS.

The lunatics have taken over the asylum.

[Bing o]

Jules360 said:

Bonus pool down £2bio on last year. Assuming 75% of bonuses get spent, thats £1.5bio less money going into the economy on goods and services. Well done the journalists and their scaremongering.

My bonus has gone on paying down my mortgage, as have a lot of my colleagues. So not strictly true.

[JonX2C]

Bing o said:

Jules360 said:

Bonus pool down £2bio on last year. Assuming 75% of bonuses get spent, thats £1.5bio less money going into the economy on goods and services. Well done the journalists and their scaremongering.

My bonus has gone on paying down my mortgage, as have a lot of my colleagues. So not strictly true.

This has been the case I have been raiseing in the Business forum

http://www.pistonheads.com/gassing/topic.asp?h=0&a...


So many people have got there houses based on their bonuses and now this, I do think its a bad option.

[Bing o]

JonX2C said:

So many people have got there houses based on their bonuses and now this, I do think its a bad option.

Then they are idiots.

My basic covers my mortgage at 3x salary, whatever else I get is spent on a nice holiday, smartening up the car, a couple of suits, and the rest goes on the mortgage.

Banking is so dull, that the sooner I can pay it off and go and do something else, the better!!

That's the real bonus.

Feel for the poor sods at Barcap who are getting their bonuses paid over three years!!

[2something]

BigJonMcQuimm said:

Fittster said:

From a practical point, do many RBS employees have alternative employment prospects if they don't like the new deal?

From a political view point it was the only option, can you imagine the head lines if billions of pounds had been paid out?

I know a number of traders at RBS who made good profits last year...

Yes some of them have already been approached about new opportunities.

What he said. There are groups of traders at RBS who have been consistently profitable over the past years and work in areas where volumes and PnL have shot up in the last year or two. Other banks are hiring in those areas because that is where money is likely to be made in the next 12 months.

The reality is that the ones you need to pay retention payments (or bonuses if you prefer) to, are the ones who are likely to make a lot of money in the next 12 months, as they are also the ones in demand.

The taxpayer will be demanding in 12 months time to know why RBS let the highly profitable teams of traders go.

Welcome to the world of knee-jerk politics: we want A, we get A, oh crap actually we didn't want A at all, as we didn't consider the consequences.

[BlueEyedBoy]

Bing o said:

JonX2C said:

So many people have got there houses based on their bonuses and now this, I do think its a bad option.

Then they are idiots.

My basic covers my mortgage at 3x salary, whatever else I get is spent on a nice holiday, smartening up the car, a couple of suits, and the rest goes on the mortgage.

Banking is so dull, that the sooner I can pay it off and go and do something else, the better!!

That's the real bonus.

Feel for the poor sods at Barcap who are getting their bonuses paid over three years!!

I guess that is not everyone at Barcap, just the Front Office....

[stifler]

Bing o said:

JonX2C said:

So many people have got there houses based on their bonuses and now this, I do think its a bad option.

Then they are idiots.

Exactly.

[ipitythefool]

2something said:

The reality is that the ones you need to pay retention payments (or bonuses if you prefer) to, are the ones who are likely to make a lot of money in the next 12 months, as they are also the ones in demand.

But this is the whole cause of the problem in the first place - paying bonuses to people for making money over a 12 month period.

The traders who bought and sold collatoralised mortgage debt a few years ago were turning huge profits over a 12 month period and look where it has got the banks now.