Cameron should ban RBS bonuses for 2012 - 2012-01-20

Commenting on David Cameron's failure to commit to blocking a 1 million pound bonus for RBS Chief Executive Stephen Hester, Labour's Vice Chair of the European Parliament's Economic and Monetary Committee, Arlene McCarthy MEP, said today (Friday 20th January):

'The 2011 remuneration rules, which I drafted for the European Parliament, clearly state that bonuses for directors of bailed out banks like RBS should be prohibited unless specifically justified. They must also prioritise repaying taxpayers and strengthening their capital base over paying bonuses.

'RBS's record in 2011 is dire - their shares have slumped more than 40% meaning that taxpayers face losses of around 23 billion pounds on the 81% stake held by the government. Thousands of jobs have been lost with another 3,500 announced recently. RBS has also missed its lending targets to ensure enough credit for small and medium size businesses.

'Bonuses must be based on measurable improvement to RBS' stability and performance. Cameron must ensure full accountability to the UK taxpayer.

'If this government is really serious about dealing with executive pay and excessive bonuses it should ban RBS from issuing any bonuses this year.

'On Monday 30th January I will be holding an inquiry in the European Parliament to ensure EU countries - including the UK - are correctly implementing the rules on remuneration and bonuses. As the predominant stakeholder, the government must take a stand in advance of the bonus season and use RBS as an example.'

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