Sky News has reported on alleged bonus payments to be paid to RBS executive John Hourican. Not so long ago UK PM David Cameron insisted that the days of huge banking bonuses being paid to executives were over. Nick Clegg, the Deputy PM, assured the British people that the UK coalition government would use any means possible to stop this disgrace.
Whilst many people were sceptical that this could be administered it was hoped that banks which had only survived financial ruin by utilising taxpayers money would play the game. After all, if the business you are in charge of fails, do you really deserve even a tiny bonus payment? Most employees find that bonus payments are linked to productivity. Without the right results their bonus payments dwindle away to naught.
Various UK newspapers have alleged that Hourican is in line for a huge bonus payment linked to the acquisition of ABN Amro in 2007. It is to be a special bonus payment. Lucky man. Mr Hourican was chief financial officer of ABN Amro. He now heads the banking arm of RBS.
The UK government, that is we the taxpayers of the UK, holds 83%of RBS shares. The government has said it could not intervene in spite of this. The bonus payment predates the current government, believes Cameron. As for future bonus payments a Downing Street official said the government will, "engage with RBS to discuss executive pay over the coming weeks and will make sure that pay reflects and rewards performance".
Yeah, yeah, springs to mind.
Mr Hourican is set to receive a £4m bonus this year. Hardly was this news out than further job cuts at RBS were announced. Apparently this news will please Chancellor George Osborne, as it is part of the restructuring of RBS. The job cuts will be announced officially later this week but look set to be in the region of 4,000.
As RBS received a £45 billion bail out from the British taxpayer money is tight. RBS are continuing to attempt to repay some of this money. That said I guess Mr Hourican's £4 million bonus would have come in handy.
An RBS spokesperson responded to the Sky News article by saying it is "completely inaccurate to imply that any decisions have been taken" over payouts.
Yeah Yeah, again. Lies, hypocrisy, banking bnuses, oh and corporate greed.