This RBS Boss Is Getting A $6 Million Bonus — Even Though The UK Government Says No

RBS Royal Bank of Scotland
EDINBURGH, SCOTLAND – APRIL 19: Protestors from the UK Tar Sands Network ‘drink’ from oil cans as they demonstrate against the RBS backing the controversial extraction of oil from tar sands in Canada, outside the Royal Bank of Scotland annual meeting on April 19, 2011 in Edinburgh. Protestors gathered outside the bank’s headquarters Gogarburn to show disapproval to the long term pay rewards for the bank’s CEO Stephen Hester, and other senior staff.

[credit provider=”Jeff J. Mitchell/Getty Images”]

Royal Bank of Scotland is set to pay investment bank head John Hourican a £4 million ($6 million) bonus this year, the FT reports.There’s a few reasons this might be somewhat controversial:

  1. The RBS investment wing was not successful, and RBS plans to dramatically scale back this part of their business.
  2. British taxpayers own 83 per cent of RBS.
  3. At the end of last year, Chancellor George Osborne told RBS to scale back its “risky activities”.
  4. On Sunday, British Prime Minister David Cameron vowed to crackdown on executive pay (“golden parachutes”) in financial sector.

All in all, this is shaping up to be an ugly confrontation between RBS and its government overlords.

A Downing Street representative told Sky News that the government will “engage with RBS to discuss executive pay over the coming weeks and will make sure that pay reflects and rewards performance”. RBS denies any decision on bonuses has been made.