Christmas bonus for RBS directors

By JOANNE HART
Updated:

 

ROYAL Bank of Scotland gave its executive directors a 2.5% Christmas bonus last year, with deputy chairman Sir George Mathewson receiving £14,475 and chief executive Fred Goodwin £14,550.

The payments were on top of basic salaries, performance bonuses, benefits and the controversial 'takeover bonuses' relating to the acquisition of NatWest last March.

RBS had a tradition of handing out cash for Christmas to all 30,000 employees, but most would not have received other bonuses and perks.

Shareholders saw no mention of the payout in RBS's most recent annual report and one said: 'On top of everything else, it leaves a sour taste in the mouth.'

RBS has now incorporated the payment into employees' and directors' salaries, effectively handing them a 2.5% pay rise. It was intended to create a level playing field for RBS and NatWest workers following the NatWest acquisition but investors have criticised the move.

'The salary is the base multiple for everything else, such as performance bonuses and incentive plans. It is also the base for directors' pensions,' said one institution.

RBS shares have roughly doubled since the NatWest deal but investors believe the bank should have been more communicative on executive pay and perks.

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