Royal Bank of Scotland receives backing for executive share scheme
The Royal Bank of Scotland has today confirmed that 99.2% of shareholders voted in favour of the controversial long-term incentive plan for the company's top executives. While this is a victory for the Royal Bank of Scotland it is worth noting that the terms of the incentive plan are likely to be amended after significant pressure from shareholder groups including the Association of British Insurers.
It seems that rather than take on major shareholders at the AGM the directors of Royal Bank of Scotland are more than happy to tweak the terms of the incentive scheme and increase the 50p threshold at which significant bonuses and share options will be triggered. It is unclear what the new threshold price will be for the options and incentives but the company can ill afford to antagonize shareholders in the current environment.
Aside from the fact that the banking industry would appear to have bounced back stronger than ever before, despite the fact that many UK consumers are still struggling, it is the billions upon billions of pounds of taxpayer's money which have poured into the Royal Bank of Scotland which is upsetting taxpayers. It is also worth remembering that liquidity in the mortgage and the loan markets are nowhere near what companies such as Royal Bank of Scotland and Lloyds Bank had promised the government.
Share this..
Related stories
Cadbury shares in demand
Cadbury shares today rose by 6p to £7.93 ahead of a trading statement from the company which will be vital in its ability to fight off an ongoing takeover approach from Kraft Foods. This is a situation which has been ongoing for some time now and is set to come to a head over the next few weeks with Kraft Foods under pressure to either "put up or shut up" after a ruling by the takeover and merger...
Read MoreCould banking dividends be under threat?
Just yesterday the Bank of England was again suggests that UK banks should increase their capital reserves in readiness for potential problems in the euro zone. This comes on top of plans to increase the safety net between liabilities and assets for the UK banking arena and could in the short-term impact upon dividends for shareholders. For many years banking shares have been the basis of a ver...
Read MoreJD Sports in talks regarding potential offer for JJB sports
It has been revealed that competitors JD Sports and JJB sports have been in talks regarding a potential offer for the under pressure JJB sports. While no figures have been mentioned and indeed no confirmation has been received that an offer could be presented in the short-term, there is a feeling that JD sports made clear to JJB management that they were considering such a move.
Tho...
UK House Building Sector May Be In Trouble
A report by stock market powerhouse UBS has caused great concern in the house building sector with many investors ‘running for the hills’. The report has clarified the alarming collapse in sales over the last two months and called into question the ability of some house builders to survive without the injection of funding to see them through what some claim are worse conditions than 1...
Read MoreHershey is looking for a sweet alliance with Cadbury
As we commented at the weekend, US outfit Hershey is said to be in talks with Cadbury about a potential "friendly" offer for the company which could pave the way for a merger of the two operations. It is believed that Hershey is unwilling to enter a bitter long-term bid battle and would rather agree a price with the Cadbury board (assuming there is room for manoeuvre) and effectively end the bid s...
Read More