Cameron Says Per-Capita Level of Pay at RBS Should Be Lowered

U.K. Prime Minister David Cameron said he will seek to bring down the level of pay per person at Royal Bank of Scotland Group Plc, hardening his stance on compensation at the U.K.’s largest state-owned lender.

“With our particular responsibility for RBS, I can tell you that I don’t only want to see the level of pay and bonuses come down overall, I want to see it come down per person, per capita as well,” Cameron said in an interview with Sky News television yesterday in Davos, Switzerland.

The comments come a week after Cameron pledged to veto any attempt by RBS to raise its total pay bill. “If there are any proposals to increase the overall pay, that is the pay and bonus bill, we will veto it,” the premier told lawmakers on Jan. 15. He also said the cash-bonus limit of 2,000 pounds ($3,325) at RBS will be repeated this year.

The opposition Labour Party called on Jan. 14 on Chancellor of the Exchequer George Osborne to reject possible moves by RBS to ignore a cap on bonuses set by the European Union. Parliament voted down a Labour motion the same day saying government banking reforms haven’t gone far enough, and arguing the U.K. shouldn’t back moves to increase EU bonus caps. The U.K. government challenged the bonus caps at the EU’s highest court in September, saying the measures were flawed.

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