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| RBS chairman says bankers' pay 'high for too long' | RBS chairman says bankers' pay 'high for too long' |
| (40 minutes later) | |
| The chairman of the 82% taxpayer owned Royal Bank of Scotland (RBS) has said banker pay has been "high for too long" and needs to be "corrected". | The chairman of the 82% taxpayer owned Royal Bank of Scotland (RBS) has said banker pay has been "high for too long" and needs to be "corrected". |
| But in an interview with the BBC's Today Programme, Sir Philip Hampton defended his decision to award a bonus to chief executive Stephen Hester. | But in an interview with the BBC's Today Programme, Sir Philip Hampton defended his decision to award a bonus to chief executive Stephen Hester. |
| He said the board "underestimated" the reaction that later caused Mr Hester to turn down his bonus. | He said the board "underestimated" the reaction that later caused Mr Hester to turn down his bonus. |
| RBS needed to be run by the "best people" on "competitive" pay, he said. | RBS needed to be run by the "best people" on "competitive" pay, he said. |
| "Stephen Hester has one of the most challenging and demanding jobs, I think literally, in world business," said Sir Philip. | "Stephen Hester has one of the most challenging and demanding jobs, I think literally, in world business," said Sir Philip. |
| Falling pay | Falling pay |
| "Although their [Hester and his team] pay is very high in absolute terms, in relative terms, compared to bankers and indeed top businessmen generally its not particularly high. In fact, by most measures, it's quite low." | "Although their [Hester and his team] pay is very high in absolute terms, in relative terms, compared to bankers and indeed top businessmen generally its not particularly high. In fact, by most measures, it's quite low." |
| Sir Philip accepted that pay needed to come down in the industry as a whole. | Sir Philip accepted that pay needed to come down in the industry as a whole. |
| "Essentially, particularly in the banks, particularly in the investment banks, shareholders have done pretty badly and employees have done pretty well. That needs to be corrected," he said. | "Essentially, particularly in the banks, particularly in the investment banks, shareholders have done pretty badly and employees have done pretty well. That needs to be corrected," he said. |
| However, he added that "pay is falling" in the industry. | However, he added that "pay is falling" in the industry. |
| 'One nation' | |
| Sir Philip's comments came as the Labour leader, Ed Miliband, called for a culture of "one nation banking" in which financial institutions are not "isolated" from the rest of society. | |
| Mr Miliband called for the government to block the bonus to Mr Hester and will press for a vote on bonuses in parliament next week. | |
| Other top bankers have also warned about pay. | |
| On Thursday, the chief executive of Deutsche Bank warned of a "social time bomb" from rising wealth and income inequality. | |
| He suggested top earners have a "social responsibility" towards philanthropy. |