BANKERS CELEBRATE NEW YEAR WITH MASSIVE BONUSES – Despite the jubilant atmosphere in London as Big Ben chimed in the New Year (see London Fireworks) many of us are mindful that 2014 will be yet another year of austerity; unless of course if you are a Banker.
According to RBS the new boss Ross McEwan, who took up the job in October, was awarded the share because he had missed out on the bonuses from his previous employers.
The share award is in addition to the £1 million basic salary RBS provided in order to attract Mr. McEwan to the top post, which the taxpayer is mostly likely to find little more than offensive considering average annual pay rises have remained well below the level of inflation; such has been directly attributed to the number of food banks popping up around the country.
It would appear that RBS attempted to overt media attention away from the shares handout as it announced its decision after the markets closed for the New Year holiday.
Goldman Sachs also revealed colossal pay bonuses to some 115 of its senior bankers worth a staggering £3 million apiece.
Once again the banks appeared to shrug off any notion that the world remains in a state of financial crisis leaving many to wonder if those in charge have any sense of reality or indeed responsibility for the taxpayer’s that bailed them out.
Yesterday the boss at Barclays Bank Antony Jenkins admitted to reporters that it could take decades before the banks ever regain the public’s trust.
“When you look at the pay everyone else is getting, to see bankers on that kind of salary is just not justified.
We live in a country where some people are being forced to go to food banks because they can’t feed themselves, so it’s obscene to see bankers being paid £3 million on average. It’s an outrageous indictment of a civilised society.” Deborah Hargreaves, of the High Pay Centre
How much faith does Mr. McEwan have in the RBS making a profit in the near future and therefore increasing its share price? From Mr. McEwan’s actions we at meebal.com would have to say ‘not a great deal’ for within hours of obtaining 454,106 he sold 214,019 of them worth £816,775; this was reported as to cover the cost of the tax liabilities arising from the share award.
According to RBS Mr. McEwan won’t be able to sell the remainder of his shares for the next six months and will by then be entitled to yet another 1.05 million shares with a value of £3.5 million; a figure based on the current share price of £3.38.
As of today, which Mr. McEwan conveniently avoided by the early pay out, new European Banking legislation comes into effect which prevents banks from awarding executives and senior staff any bonus worth more than their annual salary or twice the amount providing it is sanctioned by the banks shareholders.
As with any legislation lawyers have already found a loophole in which banks will simply be able to raise basic salaries in order to offset any reduction.
It is unquestionable that the taxpaying public will once again be outraged at such a payout for it was the taxpayer who was forced by the Government to bail out the banks in 2008 despite such a move being highly opposed by the taxpayer.
Yes it certainly does appear that once again the austerity strapped taxpayer faces the reality that those in power are more than happy to hand over taxpayer’s money in order to fuel the ever growing greed of the bankers they were obliged to bail out.