The Royal Bank of Scotland Group (RBS) will pay out a total of £1.3 billion in bonuses to its 17,000 investment banking staff despite reporting net attributable losses of £3.6 billion for 2009.
In addition, RBS has said all bonuses for employees earning more than £39,000 will be deferred and paid in three tranches over the period to June 2012. Clawback has also been introduced for all discretionary bonus payments.
Meanwhile, executive directors have deferred the entirety of any 2009 bonus until 2012 and holding periods have been extended to five years for shares forming part of the pay of the highest earners in investment banking.
Stephen Hester, chief executive of RBS, said: “In 2010, we will continue to focus on the recovery factors we can control, while effectively navigating factors we cannot. The case for investment in our group will become simpler and clearer as our strategy and actions show continuing results.”
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