So the boss of RBS has been awards a bonus of about £963000, in shares. And people are annoyed. Outraged actually. How can it possibly be right that these rich bankers get big bonuses?
I am not sure I share the outrage his bonus payment. In three points
It’s in his contract. He has a good contract and is being rewarded in the way that the company said they would reward him if he hit certain targets.
Well done on exceeding at you job. You are worth this bonus (down £1m on last year)
£963000 worth of shares in RBS? Surely that’s part of the John Lewis style economy which the deputy prime minister was chatting about. (not the greatest idea nicks had.)
No seriously, the sum of £963000 is not that much money. (within the context of banking). Last year RBS paid in total around £1billion in bonuses to employees. In 2010 Lloyds Bank paid out £5-6billion in bonuses. The Guardian reported that, in 2010 RBS have spent $4.13million on US government lobbyists. Given these large figures the Chief Exec getting £963000 seems a small figure. I’d rather give the money to the Chief Exec than pay for US Lobbyists.
Within the general UK context of people getting pay freezes and rising unemployment this is an excessive figure. It seems outlandish that one human is worth so much money. Yet the question is why do we have this moral outrage against one banker when TV personalities, footballers and film stars all will earn more than this amount this year?
Wayne Rooney is reportedly paid £250000 per week. His bonus for running the bank is about 8.3% of Wayne Rooney’s income. Is that Fair?
Without some sort of root an branch reform of our reliance on the financial sector, you have congratulate the banks on playing the game well and winning that battle.
Politically the war cannot be won unless the UK can get itself reliant on something’s other than the financial and service sectors.
Without this we are over a barrel and even though we don’t like it. The banks will act with impunity. As they know the UK is reliant upon them, yet they can move as the ‘business case’ makes itself.
I don’t like it but given the things above…I am not sure I can join the moral outrage about it. Instead of outrage I took action, I moved banks to one I thought I would act in a more just way.