facebook
twitter
rss
account
search
search
 

RBS bonus pay rankles some

Feb. 5, 2009 at 7:56 AM   |   Comments

LONDON, Feb. 5 (UPI) -- The Royal Bank of Scotland, 68 percent owned by the British government, is planning to pay tens of millions of dollars in bonuses this year, sources said.

The bank paid staff $2.6 billion in bonuses in 2007 and, while the checks won't be as large this year, UK Financial Investments, which oversees the government's bank equity, hasn't objected to the bank's bonus schedule, The Times of London reported Thursday.

"There's no blanket objection to bonuses but they are subjecting them to intense scrutiny," one source told The Times.

The bank is expected to post losses of at least $10 billion for 2008, causing some to scoff at the bonus pay.

"Some of these banks are living in the shadows, thinking that life will resume as it was in a few years' time," Commons Treasury Select Committee Chairman John McFall told The Times.

"But life has changed and they need to face up to it. A reality check is required."

"This is a bank that survives only on the basis that the taxpayer is bailing it out. The government's handling of this is increasingly pathetic," Liberal Democrats economic spokesman Vince Cable said to The Times.

© 2009 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Featured UPI Collection
trending
Notable deaths of 2014 [PHOTOS]

Notable deaths of 2014 [PHOTOS]

Most Popular
1
U.S. Air Force orders more RQ-4 Global Hawks U.S. Air Force orders more RQ-4 Global Hawks
2
Talon rocket in full-rate production for UAE Talon rocket in full-rate production for UAE
3
Students hurt in high school lab fire Students hurt in high school lab fire
4
EU, Kiev, Moscow gas talks suspended EU, Kiev, Moscow gas talks suspended
5
Hotel chain suspending sponsorship of Minnesota Vikings Hotel chain suspending sponsorship of Minnesota Vikings
Trending News
Video
x
Feedback