The Times report that the Royal Bank of Scotland are planning to pay millions in bonuses to senior executives despite analysts suggesting that the company will report a record annual loss, beating the £15bn loss posted by Vodafone in 2006.
By next month, the Royal Bank of Scotland is set to be 70% owned by the Government.
The Daily Mail report that Northern Rock are planning to pay ‘secret’ bonuses to senior managers and executives.
Northern Rock were loaned £3bn by the Bank of England in September 2007. It is estimated that the company currently owes the taxpayer approximately £26bn.
This week, President Obama announced a $500,000 (£355,000) limit on executive pay at US firms that needed fresh government aid.
This week Prime Minister Gordon Brown said he “strongly agreed” with the stance taken by President Obama but felt unable to impose any cap himself.
Just over a year ago, Prime Minister Gordon Brown had no hesitation whatsoever in imposing strict caps on pay awards to public sector staff at no more than 2%.
The public sector workers are those struggling to make ends meet, in particular in paying their mortgages to those such as the Royal Bank of Scotland and Northern Rock. They are also the ones whose taxes bailed out the banks.
“No reward for failure” as Gordon Brown put it? It certainly looks that way.
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