Saturday 1 February 2020 12:41 pm

RBS finalising plans for bonus pot of £305m for 2019

Royal Bank of Scotland (RBS) is set to pay out a reduced bonus pot of just over £300m for 2019.

RBS and its majority shareholder, which is the government with a 62 per cent stake, has agreed a bonus pool worth around £305m for last year, according to Sky News.

It would be the lowest pot since its bailout more than ten years ago.

The variable pay figure will be disclosed along with the bank’s annual results in a fortnight’s time and is expected to be 10 per cent less than 2018’s payment of £335m.

In its report a third successive year of profit is expected to be confirmed. Barclays analysts have predicted RBS will have an operating profit of more than £4bn and an attributable profit of £1.8bn.

A £2,000 cap on cash bonuses at the bank will remain in place, a source told Sky News.

There are set to be changes under new chief executive Alison Rose, though, who is planning to cut jobs and shake up her management team, the report adds.

Rose will outline plans to improve customer service will cutting costs.

The Sunday Times reported last weekend that one scenario being considered would see 3,700 of the 65,000 employees at RBS lose their jobs.

Rose is not expected to discuss headcount reduction this month.

She will, however, confirm the departure of Mark Bailie, who is the chief executive of the bank’s digital lender, Bo.

RBS declined to comment on Saturday.