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Royal Bank of Scotland pays £375m to 323 key staff | Royal Bank of Scotland pays £375m to 323 key staff |
(40 minutes later) | |
Royal Bank of Scotland (RBS) has given details of the amount that it paid its top people in 2010. | Royal Bank of Scotland (RBS) has given details of the amount that it paid its top people in 2010. |
The bank announced that it paid a total of £375m to 323 people designated as "code" or key staff. | The bank announced that it paid a total of £375m to 323 people designated as "code" or key staff. |
RBS, 83%-owned by the taxpayer after a government bail-out in 2008, made a £1.67bn loss in 2010, after losses of £3.6bn in 2009 and £35bn in 2008. | RBS, 83%-owned by the taxpayer after a government bail-out in 2008, made a £1.67bn loss in 2010, after losses of £3.6bn in 2009 and £35bn in 2008. |
RBS has already disclosed that chief executive Stephen Hester received a pay package worth £7.7m for 2010. | RBS has already disclosed that chief executive Stephen Hester received a pay package worth £7.7m for 2010. |
Mr Hester said in the bank's annual report that its recovery was "ahead of schedule", highlighting the fact that the bank had returned to operating profit. | Mr Hester said in the bank's annual report that its recovery was "ahead of schedule", highlighting the fact that the bank had returned to operating profit. |
Before restructuring costs, strategic disposals, bonus tax, fair value changes and a host of other exclusions, this operating profit came in at £1.9bn. | Before restructuring costs, strategic disposals, bonus tax, fair value changes and a host of other exclusions, this operating profit came in at £1.9bn. |
"We have much work still to do and there are significant obstacles still to overcome," Mr Hester warned. | "We have much work still to do and there are significant obstacles still to overcome," Mr Hester warned. |
Pay restraint? | |
The BBC's business editor, Robert Peston, points out that the "code" staff, as defined under rules set by the Financial Services Authority, earned, on average, £1.2m each. | The BBC's business editor, Robert Peston, points out that the "code" staff, as defined under rules set by the Financial Services Authority, earned, on average, £1.2m each. |
They are those executives who are perceived to do things that have a bearing on the risks that banks takes. | They are those executives who are perceived to do things that have a bearing on the risks that banks takes. |
However, he adds that this definition excludes other RBS staff, such as traders, who earned even more than this. | However, he adds that this definition excludes other RBS staff, such as traders, who earned even more than this. |
"For what it's worth, RBS's code staff earn less than Barclays' code staff, whose average pay was £2.4m per head," our business editor adds. | "For what it's worth, RBS's code staff earn less than Barclays' code staff, whose average pay was £2.4m per head," our business editor adds. |
"So presumably the chancellor of the exchequer will point to this disparity as proof that taxpayer-owned RBS is showing restraint." | "So presumably the chancellor of the exchequer will point to this disparity as proof that taxpayer-owned RBS is showing restraint." |
Although the RBS pay undercut Barclays' figure, it was higher than that of HSBC, which said it paid 280 staff an average of just over £1m each. | |
Banks have been releasing this information in accordance with new EU rules on disclosure of remuneration. | |
Publication of the figures also follows the banking sector's Project Merlin agreement with the UK government, aimed at curbing high pay and boosting bank lending. |
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