2010
Bonus cuts force two RBS bankers to resign
Two bankers from RBS have resigned after RBS have been forced to decrease the amount given in bonuses. Steve Ashley, head of RBS’s trading division and Chris Fleming, sales, quit the bank on Friday.
This is going to hit RBS hard as their trading business is one of their top earning businesses. Mr Kingman, the outgoing chief executive of UKFI, said “We cannot afford to be in a position where the banks lose so many people that we start to lose serious value.”
Although Gordon Brown stated that he will help the banks with ‘every last penny of taxpayer support .’ he also said. “I’m sure you share my anger with some of the banks, it is only fair that those who have contributed to the recession and have now benefited from taxpayers’ support give something to society in return.”
I believe a lot of the public are more inclined to the second statement. As the Times reported in December 2009 ‘MORE than 1,000 investment bankers have quit Royal Bank of Scotland to join rival firms for guaranteed cash bonuses and big salary increases, according to banking sources. ‘
This looks like a trend and as more top execs look for other opportunities and higher bonuses RBS is going to suffer. Also with more budget tightening on its way, which bank will be the next to see their top execs leave?
Source Telegraph & TimesOnline
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