Royal Bank of Scotland (RBS) bankers are in for a disappointing bonus season, after the lender said it had cut its bonus pool by eight per cent.
The company said today it had cut its bonus pool from £373m in 2015 to £343m last year.
Over 93 per cent of the pool will be paid out to those below the executive level, it said, while 50 per cent of its employees will receive less than £2,000, and another 23 per cent will receive less than £5,000.
Meanwhile, chief executive Ross McEwan will receive his £1m salary, while chief financial David Stephen will make £800,000. As part of his pay packet, he will be awarded a share allowance worth 100 per cent of his salary, which will be released over a three-year period.
On top of that, McEwan will receive a long-term incentive worth £1.75m, although the deferral period after which it will vest will be extended from three years to seven.
This morning RBS, which is 73 per cent owned by the taxpayer, said litigation and conduct costs had cost it £5.9bn in 2016, while it took a £2.1bn hit on restructuring costs.
However, this week it was confirmed the lender will no longer be required to flog the 300 branches comprising its Williams & Glyn network, which it was originally required to sell as part of the conditions of its bailout programme.
The bank said it expected to cut £750m of costs this year, through "simplification and digital transformation" – having reduced full-time staff by almost 10,000 in 2016.