Bonus

Originally Posted by Kilted Ginger

The press as usual reports what they want and ignore the truth. The £1billion bonus that RBS is reportedly planning to pay, is not to the executives, it is to the front line staff on the shop floor, the ones on as much as 10k a year with a bonus of 5%. Here lies the problem. The fat cats in the exec offices that made all the mistakes are not getting their bonus. The bonus in question is a profit related bonus (as in most sectors) ie make x profit get y bonus. The Retail banks (all of them, rbs, hbos, lloyds, barclays etc) ie the ones on the high street dealing with us all made profit, it was completely seperate businesses within their groups that made all the bad investments and losses but unfortunately have all been lumped together. Why shouldnt their worker egt what they are entitled too. Remember all that the press say is not gospel.

If you work in a shop selling fruit, veg, bakery and sundries and at the start of the year are promised a bonus if you sell x amount of fruit, through the year the boss takes some of the companies capital and makes bad investments so over the year the company makes a loss, howevr you have sold the x amount of fruit you were contracted to, should you not get your bonus???

the difference is, if you're working for anyone else eg woolies and they go bust your out on your ass, not a job let alone a bonus. If a bank goes bust your job and bonus are secured by the tax payer

Originally Posted by jamesrichardson

If a bank goes bust your job and bonus are secured by the tax payer

If you think people in the banking sector have secure jobs you clearly don't have a clue!

Originally Posted by Flamin_Squirrel

If you think people in the banking sector have secure jobs you clearly don't have a clue!

+1

Not a happy time in the City at the moment for many including myself.

FS I am afraid that can be said for many businesses at the moment not only banking.

I still stand by my original argument that as PLC's they should not be using taxpayers money to pay bonuses
The other companies that have had state assistance are laying people off or putting them on short time in order to survive not paying bonuses

[mattSV]

The Government's money that was used for the Banks was provided to ensure that Bank's had adequate capitilisation to be able to lend money, and is not technically being used to pay bonuses.

Ultimately, the Government's money will be repaid (with substantial interest), therfore benefiting the overall economy.

It is true that there have been a number of right royal screw ups at RBS, including:-

• Sir Fred insisting on buying ABN at ANY cost just to stop Barclays
• Sir Fred guaranteeing all staff 10% of their salary as profit sharing (however obviously with no profits there will be no profit sharing)
• Sir Fred implementing a 'performance related pay' scheme that (in theory) pays a bonus only if you are a 'top performer' - typically, less than 50% of staff (not executives) will get a bonus. Staff pay tax on the bonus, and it is not pensionable - it is however a good reason to keep salaries down, as staff are told they need to look at their 'overall package' and not just their basic salary

However, it was not just Sir Fred - the other board members (and shareholders) all voted in favour of these decisions, however it seems to be only him that will be getting a kicking at the Select Comittee hearing tomorrow.

Now, as a member of RBS staff I am mad as hell at the postion the bank is in. Our shares once traded at £21.73, are now trading at around 25p. I am lucky, in that I do not have any shares at all - I know some colleagues who have lost tens of thousands.

If we were all being paid £100k plus a year then fair enough, however I have been there for over 20 years, have always been a 'top performer' and take home well under £2k a month despite working my @rse off.

This year (as in all other years) I have hit all of my targets, displayed all the right behaviours, and gone over and above what I am expected to do in an area of the bank that is still making good profits, reducing costs and minimising losses - therefore, I would normally get a bonus. However, because everyone is jumping on the bandwagon that is looking as though it may not happen.

All of this media grief, along with the new Chairman and Chief Executive having kicked off 'Strategic Reviews' which are only likely to lead to one thing for many of the staff - right now I could quite happily take a redundancy package and go and stack shelves (and probably earn more money - with or without bonuses).

http://business.timesonline.co.uk/to...cle5694072.ece

me just got back from my mates in london-

he is operations director for the investment arm of a well known bank-

he was looking forward to goin in to work today to hear what his bonus will be..

he will be getting over 100K one hundred !! over...!! - bonus next monday ! not his wage-- pure straight in the bank bonus !

BUT


he works 18 hour days 6 days a week and is never off his blackberry and doesnt see his kids and has contributed to his arm of the bank making around 4 Billion £...... so does he deserve it- yea I think so.. but othersmight not..

NB- he used to put bread out at 7am at marks and spencers in Crewe with me at age 17 before we went to college -- where did I go wrong??

Originally Posted by etuna

+1

Not a happy time in the City at the moment for many including myself.

+1

This week or so, there will be the 4th round of redundancies in the past 12 or so months at my place. The only thing worse would be if the bank went under IMO.

Originally Posted by Flamin_Squirrel

If you think people in the banking sector have secure jobs you clearly don't have a clue!

ok yeah, i used the wrong word, i should have said their jobs were funded by the tax payer. I know no job is secure at the moment.

My point still stands, taxpayers are not bailing out every other firm that goes bust

Barclays aren't getting bonuses as far as i know, and to be honest, in this climate, i think it's quite calming to know that your bank can make that much money at least it ain't gonna collapse, and it's run by competent people (to an extent).

I bank with Nationwide though which i suppose is as safe as you can get bar Northern Rock.