Royal Bank of Scotland Group Plc, Britain’s largest taxpayer-owned lender, awarded 10 executives a total of 1.8 million pounds ($2.8 million) in shares, as banks sidestep European bonus limits.
Chief Executive Officer Ross McEwan, 58, received stock valued at 264,644 pounds, more than investment bank co-heads Chris Marks and Mark Bailie, who got 255,941 pounds each, the Edinburgh-based bank said in a statement on Wednesday. The role-based awards cover the first half of 2015.
The U.K.’s biggest banks are sidestepping European Union rules limiting bonuses to twice fixed salaries by paying allowances in shares, arguing the stock awards form part of basic compensation. HSBC Holdings Plc said on Monday that it awarded 14 executives a total of 1.9 million pounds for the second quarter of the year.
The RBS shares awards are based on a stock price of 344.8 pence and will be released in installments over five years. The bank traded down 1.5 percent to 339.7 pence at 2:56 p.m. in London.
McEwan, who joined RBS from Commonwealth Bank of Australia, will give his fixed-share allowances for 2015 to charity when they are released. Finance Director Ewen Stevenson got 211,714 pounds in share awards.