RBS report £3.5bn loss - did that stop them paying out massive bonuses?
RBS have gone and reported a £3.5bn loss for 2014. Seeing as we own them, they'll probably make out like it is our fault. There's small good news for the state-owned bank, as this loss is down from £9bn the previous year.
Chief exec Ross McEwan has said, ever so graciously, that he won't be getting a bonus this year. Not that anyone will mind at the company, as they handed out £421m in bonuses in 2014, so they'll manage for a year. McEwan himself is on a wage of £2.7m, so he won't be buying rolling tobacco and scadging pints off his mate just yet.
McEwan has said that these bonuses are fair and talking on the Today programme, he said that they're 'fair pay' and it is necessary to pay out these bonuses if they want to get the right people in the business to carry out "fairly technical jobs."
Chancellor George Osborne has written a letter to the new chairman of the bank, Howard Davies, pointing out that he didn't expect the bank to give bonuses to senior executives: "I would also expect that, as in the past, no executive directors or members of the executive committee will receive bonuses, despite improved profitability."
"Given the extraordinary support it has enjoyed in the past from taxpayers, I know you recognise that RBS must remain a backmarker on pay and continue to show responsibility and restraint."
McEwan responded to all this by saying: "What's really important is that given the success of the last year we want to go further and faster in reforming this bank."
We'll see, eh?