The Anonymous Widower

Peston on RBS Bonuses

Robert Peston at the BBC is a financial commentator I respect.  His post today, in response to the news that the Chairman of RBS, Sir Philip Hampton,  has turned down his bonus, should be read by all. According to Peston, Sir Philip didn’t actually request a bonus in his contract.

Well, the additional reward for Sir Philip was always something slightly unusual, which – as it happens – he didn’t request when he took the job three years ago. This shares incentive had already been agreed in negotiations with another candidate to chair RBS (Lord Davies, the former Standard Chartered chief executive, who ultimately turned the job down), and Sir Philip just attached his moniker to a contract drafted for someone else.

That sounds like a cock-up by the previous government to me.

Peston goes on to have a dig at the lack of talent available and also headhunters, whose interest is best served by high salaries. The first point is proven by looking at how many banks  the world are in trouble and the second is well-known to anybody who’s ever hired anybody through a headhunter or an agency.

I think we’ll only know how good Hester and his co-directors are, when RBS is sold off.

January 28, 2012 - Posted by AnonW | Finance, News | Banks, RBS