Royal Bank of Scotland bows to shareholder pressure
In a humiliating U-turn, Royal Bank of Scotland chairman Philip Hampton will be forced to admit that the company's executive pay scheme needs to be reviewed. It is believed that the U-turn will be announced on 28 April at the company's annual general meeting although we may not see details of the revisions until after the company's trading statement which is expected on 7 May. However, the company has already privately admitted that the share price target which would qualify various directors for significant bonuses has been set too low.
The suggestion that the executive pay scheme will be reviewed and amended in the short to medium term comes just days after Lloyds Bank felt the wrath of the ABI regarding bonus recommendations. There is no doubt that shareholders are no playing a more active role with regards to remuneration packages and bonuses and we can expect more friction and more conflicts in this particular area in the weeks and months ahead.
Shareholders, especially taxpayers, are now demanded more value for money which could put some companies such as Lloyds Bank, Royal Bank of Scotland's and even Northern Rock in very difficult positions regarding remuneration and attracting the best staff. There is certainly a need to find a balance between acceptable remuneration and value for money.
Share this..
Related stories
Goldman Sachs under pressure over Lloyd's Bank refinancing
In yet another attempt to smear the reputation of financial giant Goldman Sachs the financial press is today full of news regarding the company's involvement in the Lloyd's Bank refinancing. It has come to the attention of financial journalists that Goldman Sachs was both an investor and an underwriter in the massive £23.5 billion transaction. But is this really something we should be concerned a...
Read MoreNational Savings and Investments set to shake up savings market
The National Savings and Investment body has launched a one-year 3.95% fixed-rate savings bond which has caught the attention of consumers and savers in the UK. This is significantly higher than the vast majority of savings accounts and savings bonds offered in the wider market and will no doubt put significant pressure upon other companies in the UK to follow suit. However, there may well be othe...
Read MoreUK government agrees £150 million payment for FirstGroup
The UK government has agreed a further £150 million "investment" of UK taxpayer funds into the FirstGroup travel operation. This is the U.K.'s largest transport group with a particular interest in the UK rail network via its two franchises recently acquired from the government. It may not be well known, but the UK government has continued to subsidise these franchises despite the fact they are no...
Read MoreFSA warns about use of cloned websites
The Financial Services Authority (FSA) has this week sent out 10,000 letters to genuine investors whose names appeared on a so-called "boiler room" list. These "boiler room" lists are effectively genuine investor details which have been acquired by rogue share traders with the intention of selling either worthless or non-existent shares using very strong and aggressive sales tactics. This comes...
Read MoreWill Royal Bank Of Scotland Need More Funding After The £12 Billion Rights Issue?
While Royal Bank of Scotland (RBS) may be on the verge of securing one of the largest UK fund raisings of recent times, via a £12 billion rights issue, a report from Deutsche Bank AG suggests that RBS may need to return to the market some time soon for more funding. The report from Deutsche Bank AG does not suggest that RBS is in any trouble. But it does cast doubt on the strength of the group&r...
Read More