I didn’t think much of 2011 would pass before open season for ‘Banker Bashing’ started again and today’s revelation about bank bonuses has certainly refuelled the fire.
I have to say I found the news coverage, including a live interview by Andrew Marr of the Prime Minister, a little premature; because the actual terms of the bonus is not agreed yet according to David Cameron, but it appears that the Boss of RBS is in line for a bonus in 2011 of £2.5 million. This will be on top of his meagre pittance of £4.5 in basic pay.
Now I can easily argue the case for bonuses in business and agree they play an important part in attracting and retaining high achievers but I have to say I find the RBS proposal excessive. APA members have been writing continuously about the role of the Banks and their part in the current economic crisis. Not to mention the vitriolic way in which small businesses blame them for lack of debt (let alone equity) finance. So how can any bonus be justified in an environment, especially where the British Taxpayer is the major shareholder (in the case of RBS around 84%). As one member recently observed: “For every £1 million in bonuses, another 30 fully tax paying employees at the average national wage could be placed in work. And around twice that at the minimum wage!
In the same breath the PM condemned the ‘vast pit of debt’, which was poetic, given that we normally associate vipers with pits and at least two pits (OK, Pitts) have been prime minister. Perhaps its time to fill in the pits and redistribute the bonuses.
I have to say I found the news coverage, including a live interview by Andrew Marr of the Prime Minister, a little premature; because the actual terms of the bonus is not agreed yet according to David Cameron, but it appears that the Boss of RBS is in line for a bonus in 2011 of £2.5 million. This will be on top of his meagre pittance of £4.5 in basic pay.
Now I can easily argue the case for bonuses in business and agree they play an important part in attracting and retaining high achievers but I have to say I find the RBS proposal excessive. APA members have been writing continuously about the role of the Banks and their part in the current economic crisis. Not to mention the vitriolic way in which small businesses blame them for lack of debt (let alone equity) finance. So how can any bonus be justified in an environment, especially where the British Taxpayer is the major shareholder (in the case of RBS around 84%). As one member recently observed: “For every £1 million in bonuses, another 30 fully tax paying employees at the average national wage could be placed in work. And around twice that at the minimum wage!
In the same breath the PM condemned the ‘vast pit of debt’, which was poetic, given that we normally associate vipers with pits and at least two pits (OK, Pitts) have been prime minister. Perhaps its time to fill in the pits and redistribute the bonuses.
Gareth, APA
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