RBS bonuses 'to be controlled'

Dec 2 2009 By nebusiness

The Treasury has demanded control of Royal Bank of Scotland’s bonus pot, it emerged today.

As part of the terms of its deal to insure bad debts, the Government wants to dictate both the "quantum and shape" of the payouts at the bank for 2009, according to a report this morning.

It is understood that institutional investors have raised concerns about RBS’s ability to operate competitively after the move, which would give the Treasury a veto over the size and terms of bonus payments.