Myners backs RBS on pay

City A.M. Reporter
CITY minister Lord Myners yesterday voiced his opposition to pay restrictions at the Royal Bank of Scotland.

He told a parliamentary hearing that the bailed-out bank could not compete if pay was curbed too much.

“If we want RBS to compete in a global has to equip itself appropriately to do that,” he said.

“If we said to RBS that you can only pay your key employees up to the national average...or some other arbitrary figure, the effect would be a significant erosion in the competitiveness of the bank, the loss of its ability to [provide] credit, a loss of employment – particularly in Scotland – and a decline in the stature of the bank,” Myners said.

RBS has been forced to agree to slash cash payouts and hand the state a veto on its 2009 bonus pool. Stephen Hester, the bank’s chief executive said pay pressures could affect the bank’s turnaround efforts.