Stephen Hester complains about recruiting in the financial sector
Stephen Hester, the government appointed chief executive of Royal Bank of Scotland, has today broke ranks from the government suggesting that his "single greatest business problem" at Royal Bank of Scotland is recruitment. He believes that the UK government's attack on the UK banking bonus culture together with the overall demonisation of the sector has impacted upon the number of people looking to work in the UK financial arena.
In another surprising development he has also refused to estimate how much Royal Bank of Scotland will pay in bonuses this year which will obviously upset the UK government. It would seem as though those banks in which the UK government has significant stakes are under more pressure and more focus than those which remain out of the government's reach. As a consequence it is likely that Royal Bank of Scotland will either have to pay future staff more money than their competitors or else risk losing some of the top talent in the UK financial arena.
There is no doubt that the UK government is pulling many strings behind the scenes with regards to Royal Bank of Scotland and Lloyds bank although at some point the government will have to reduce its influence over these companies in order to sell on significant tax payer share stakes in the future.
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