Labour Asks U.K. Chancellor to Enforce Cap on RBS Bonuses
Chancellor of the Exchequer George Osborne should reject any attempt by Royal Bank of Scotland Group Plc to award bankers bonuses of twice their annual salary, according to the main opposition Labour Party.
RBS may try and win backing from the U.K. government, its largest shareholder, to invoke a clause in European Union law that would otherwise limit bonus pay to 100 percent of base salary starting in 2014, the Financial Times reported today, without saying where it obtained the information.
“The government should reject any request from RBS to increase the cap,” Chris Leslie, Labour’s shadow chief secretary to the Treasury, said in an e-mail. “We will put this to a vote in the House of Commons as part of our opposition day debate on the government’s wider failures on banking.”
The European Banking Authority last month advised the European Commission to allow waivers to some staff earning more than 1 million euros ($1.4 million) a year. The U.K. government challenged the bonus caps at the EU’s highest court in September, saying the measures were flawed.
RBS, Britain’s largest state-owned bank, based in Edinburgh, said in a statement today that “no decisions have been made” and that it’s “in consultation on overall pay policy” with shareholders, without elaborating.
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