THE CHIEF executive and finance boss at RBS will no longer receive bonuses, instead getting regular payments in shares – which could amount to more than £2m per year between them.
The bailed-out bank will not be able to pay bonuses of above 100 per cent of salary, thanks to Brussels’ bonus cap, leaving it struggling to meet the rewards on offer at rival banks.
As a result it plans to make up the difference by offering allowances in shares.
RBS’ bosses wanted to pay bonuses of up to 200 per cent of salary, the maximum allowed under new EU rules. But the government, the banks majority shareholder, stuck with a cap of 100 per cent.
“The marketplace for skilled personnel is more competitive, which means the cost of hiring, training and retaining skilled personnel may continue to increase,” the bank warned on Friday.
“The failure to attract or retain a sufficient number of appropriately skilled personnel could place the RBS Group at a significant competitive disadvantage and prevent the RBS Group from successfully implementing its strategy.”
Paying a regular allowance follows similar moves from banks including Barclays, HSBC and Lloyds who have all acted to avoid the bonus cap hitting its ability to hire top staff.
Regulators have approved the system as the next best way to pay staff, once bonuses are capped.