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LeeR
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PostPosted: 12:12 - 10 Feb 2009    Post subject: RBS Bonuses Reply with quote

I don't know how any of you feel about the proposed bonuses RBS plans to pay it's staff, but if you feel strongly enough against them you might like to sign John Prescott's on-line petition:

No Ifs No Buts- Give up the Bonus, RBS
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Wafer_Thin_Ham
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PostPosted: 12:14 - 10 Feb 2009    Post subject: Reply with quote

They won't give up the bonus, and I'm not surprised to be honest. The government just lets them walk all over it.
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Itchy
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PostPosted: 12:16 - 10 Feb 2009    Post subject: Reply with quote

No quite frankly they can't not give them because it will be written into their contracts..

Bonuses are taken back , the staff run a class action suit they win easily and have to pay it anyway.

But hey the banks control the government anyway you aren't going to screw over your masters are you?
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Kickstart
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PostPosted: 12:24 - 10 Feb 2009    Post subject: Reply with quote

Hi

Difficult to say which way. Plenty of those staff could have bonuses for doing their particular role to a certain standard. If someone had an agreement last year that if they did X, Y and Z this year then they would get a bonus then you will struggle to remove it, and likely that many (especially back office staff who are not actually dealing with money directly) will have succeeded in doing their X, Y and Z.

That said those who do deal directly with money would struggle to come up with a justification unless their bonus objectives were very badly set.

Problem with bonus schemes like these at high levels is that they land up encouraging micro management and short termism while ignoring the long term issues. It is easy to fiddle the books to get a short term benefit at the expense of the long term (eg, in manufacturing just scrap new product development, large short term benefit but the company will be dead in a couple of years).

All the best

Keith
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UnknownStuntm...
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PostPosted: 13:13 - 10 Feb 2009    Post subject: Reply with quote

See I think firms who pay massive bonuses are cnuts anyway. My point being, if the staff are in a position to do a shithot job, they should be being paid at the appropriate level to do said job. Bonus, yes - anything more than 10% of a salary - no.

I've got a mate who works for a mobile phone company in Laahndaan and he is obnoxious to the point where I would smack his face across the floor when he talks about the bonus he gets. It's something approaching £40k. He must be on about £80k a year salary.

So frankly I think it's all a big con. I'm sure there are tax reasons though and Itchy will no doubt piss on my fire here!
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Itchy
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PostPosted: 13:19 - 10 Feb 2009    Post subject: Reply with quote

UnknownStuntman wrote:
salary.

So frankly I think it's all a big con. I'm sure there are tax reasons though and Itchy will no doubt piss on my fire here!


Depends how they are given in that a bonus is taxed the same as salary virtually.

The only way to not pay any tax on it is for a bonus to be paid via stock options and then it goes the way of CGT , so if I award you £100K in share options, compared to say £100K in hard cold cash.

On the hard cold cash you pay 40% income tax and 1% NIC ie £41000

On share options you sell , you get 9200 tax free, then the rest you pay 18% on ie £16344 , a massive tax saving, and you can deduct legal costs of buying and selling AND deduct the cost of the shares you bought AND use entrapaneurs relief , giving an effective tax rate of 9%.
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LeeR
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PostPosted: 13:46 - 10 Feb 2009    Post subject: Reply with quote

As I said, if you feel strongly enough about it...

Anyway, my own personal thoughts are:

Yes, the employees have a written contract, but how many times is that contract ignored to suit the whim of the employer?

You're right some of the staff maybe "back-room" staff working hard and getting screwed because of poor management decisions, but then who isn't?

Yesterday my employer withdrew overtime and bonuses until further notice. This on top of suspended pay rises and redundancies in January, as I live in the real world why can't they?

Had the RBS along with other banks been allowed to fold (yes I know that's an entirely different discussion) then there wouldn't be any jobs or contracts to quibble over.

As one of the signatorys puts it:
Quote:
Its time our Prime Minister & Chancellor stopped expecting these bankers to do the right thing, isn’t it obvious by now they don’t know what the right thing is!
Delphi - 10105

From a more objective perspective, I don't like the idea of privatising banks, I think as a socialist that this is the last area of commerce that we need in state hands.

Being pragmatic I accept that the situation is as it is, and we have to learn to live with it. But, I really think the government as the No.1 shareholder aught to be dictating how the business now operates. I think this is what John Prescott is trying to achieve, well at least I hope it is.

I'd also like to see LloydsTSB throwing their weight behind this having bought the RBS.

As a nation we're clearly in a tight spot, and as we're all "pissing in the same pot" to get out of this fix, it's very distasteful to have bankers pissing down our backs telling us it's raining!
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bazza
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PostPosted: 14:21 - 10 Feb 2009    Post subject: Re: RBS Bonuses Reply with quote

LeeR wrote:
but if you feel strongly enough against them you might like to sign John Prescott's on-line petition:


Hmm... One fat freeloading cunt objects to other fat freeloading cunts.

I'll pass.
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arry
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PostPosted: 14:29 - 10 Feb 2009    Post subject: Reply with quote

You really need to get under the skin of it and understand a lot of the background around RBS's plunge from one of the most respected brands in the world to the most despised pretty much overnight.

First off - bonus culture, talk of massive bonusses etc - you need to realise that everyone in a non managerial position at RBS is on a profit share arrangement of 10% salary, and has a performance bonus of maximum 15% tied in also. Financial targets are only part of the way in which the performance bonus is made up - the majority of it centres around customer service, technical competency, behvioural competencies etc. Now, the company may be in a financial turmoil but how do you tell someone that's worked to the company's statement of appetite and strategy, performed well and met all of the above including financial targets that they're not worth a bonus? Was it their fault? Did they set the strategy?

Conversely - it could be said (and I think it holds some water) that if Sir Fred wouldn't have gone against the advice of just about everyone including his own board that ABN Amro was a bad deal, and just bought it anyway, then RBS may not have been in state hands at all. So you could say that the exec board did all they could, but at the end of the day Goodwin's decision has cost them all dearly - is that something they can be penalised heavily for?

The irony is Barclays now coming out and saying they'll pay themselves bonusses because they've made a profit - their strategy wasn't too much different to RBS' and if we're honest, if they'd have bought ABN Amro instead of RBS The boot would well and truly be on the other foot!
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Polo
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PostPosted: 15:15 - 10 Feb 2009    Post subject: Reply with quote

Not many people told RBS not to go ahead with the ABN Amro deal. As has been stipulated, such takeovers have to have shareholder approval - which was gained at around 90% approval.

The big mistake was getting into a bidding war with Barclays. But that is Sir Fred for you. He wanted it and was willing to pay whatever. It appears that a lot of the ABN business done preio to RBS was conducted after a good shmokes. A lot of write downs are from their books but that should have been picked up with due dilligence.

In terms of bonuses - like has been in the press and written above. This is written into contracts, you can't just tear them up. This voids any online petition and why any threats from the Government is just lip service.

Expect future contracts of this nature to be renegotiated but for now there is not a lot that can be done. Where the bonuses can be slashed, they will be. I know that for a fact and the RBS profit share is up to 10%. Which will clearly be £0 for the foreseeable future.
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LeeR
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PostPosted: 15:18 - 10 Feb 2009    Post subject: Reply with quote

A fair point Bazza...

Prescott is a two-faced shyster, but if he really had two would he be wearing that one? Thinking

Back to the point:

I was under the impression that in spite of Barclays raising £17 billion privately (at the government's request) they weren't going to pay bonuses.

And in spite of the hows and whyfors the fact remains that a commercial business bailed out to the tune of £30 billion (via the LloydsTSB buy out) who made a £28 billion loss last year, now intends to pay upwards of £1 billion in bonuses to it's staff.

If that don't stick in your throat, one has to ask: "Where is your gag reflex?"
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arry
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PostPosted: 15:24 - 10 Feb 2009    Post subject: Reply with quote

LeeR wrote:

And in spite of the hows and whyfors the fact remains that a commercial business bailed out to the tune of £30 billion (via the LloydsTSB buy out) who made a £28 billion loss last year, now intends to pay upwards of £1 billion in bonuses to it's staff.

If that don't stick in your throat, one has to ask: "Where is your gag reflex?"


Presumably it wouldn't have bothered you a toss if their salary was 40% higher but with no bonus provision, because you'd not have heard about it nor would you question their salary range - but because it's called a bonus and it's featured in a few newspapers; everyone's up in arms and it's national pick on a bank clerk day.

Performance related bonuses only top up salary to what is market proximate within the sector anyway.
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Polo
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PostPosted: 15:28 - 10 Feb 2009    Post subject: Reply with quote

Lee,

Would you prefer that these banks were nationalised? Do you want to obtain your bike, car, home, cat, dog, life etc, insurance from the Government? How about the people that stipulate motor vehicles require insurance, also provide it? RBS & HBOS aren't just banks, they are financial services and that muddy's the waters.

The government can turn a good profit from the bailouts and this will be seen in time. To do this, these banks need to retain it's good staff.

Me included. Wink
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arry
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PostPosted: 15:29 - 10 Feb 2009    Post subject: Reply with quote

Minty wrote:


Me included. Wink


phew, I'm not alone Thumbs Up Thumbs Up
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Polo
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PostPosted: 15:30 - 10 Feb 2009    Post subject: Reply with quote

(Minty leans forward for a low key, Hi-5)
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LeeR
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PostPosted: 16:01 - 10 Feb 2009    Post subject: Reply with quote

arry wrote:
Presumably it wouldn't have bothered you a toss if their salary was 40% higher but with no bonus provision...
Performance related bonuses only top up salary to what is market proximate within the sector anyway.


No because if the salaries were 40% higher then they would currently be looking to "maximise profits" i.e. they'd be making people redundant. The reason the government bailed them out (the banks that is) apart from the massive problems a collapsed bank brings, is so they didn't end up with 30,000 people on the dole overnight.

And the next time a bank clerk perfoms for me I'l let you know. Wink

Minty wrote:
Would you prefer that these banks were nationalised?


No I already stated that earlier:

LeeR wrote:
From a more objective perspective, I don't like the idea of privatising banks, I think as a socialist that this is the last area of commerce that we need in state hands.


Minty wrote:
The government can turn a good profit from the bailouts and this will be seen in time. To do this, these banks need to retain it's good staff.

Me included. Wink


Oh you're "...alright Jack!" well that's okay then.

My wife worked for RBS in the 80's and 90's they were rapacious cunts then and in my opinion they've only gotten worse.

The tactic of selling financial services to people who can ill afford it was always their mantra.

The sad thing here is we're all reaping what they've sown.

Sign the petition, don't sign the petition... Neutral
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Polo
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PostPosted: 16:13 - 10 Feb 2009    Post subject: Reply with quote

Yeah, I am alright. I have just spent the last year wondering if my job was going as part of the RBS Insurance sale only to now enter the part where RBS start their jobs cull.

Oh yeah, I am on top of the world, ma.



Some of your facts are a little, sorry, way off the mark.

Quote:
And in spite of the hows and whyfors the fact remains that a commercial business bailed out to the tune of £30 billion (via the LloydsTSB buy out) who made a £28 billion loss last year, now intends to pay upwards of £1 billion in bonuses to it's staff.


Quote:
I'd also like to see LloydsTSB throwing their weight behind this having bought the RBS.


Shhh! Lloyds TSB bought HBOS, not RBS Shhh!
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arry
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PostPosted: 16:16 - 10 Feb 2009    Post subject: Reply with quote

LeeR wrote:

No because if the salaries were 40% higher then they would currently be looking to "maximise profits" i.e. they'd be making people redundant. The reason the government bailed them out (the banks that is) apart from the massive problems a collapsed bank brings, is so they didn't end up with 30,000 people on the dole overnight.

And the next time a bank clerk perfoms for me I'l let you know. Wink


They are making redundancies, there's a widescale review going on as we type. I doubt that was the Govt's motivation though, I'd have said that had far more to do with them having to stand by their guarantee of savings which would be far more costly to them.

As for bank clerks and performing - you're welcome to your opinion, I'm not a bank clerk; nor do I work in the banking industry so if it was thinly veiled criticism - I'd suggest aiming it elsewhere Wink

LeeR wrote:


Oh you're "...alright Jack!" well that's okay then.

My wife worked for RBS in the 80's and 90's they were rapacious cunts then and in my opinion they've only gotten worse.

The tactic of selling financial services to people who can ill afford it was always their mantra.

The sad thing here is we're all reaping what they've sown.



Nothing to do with "you're alright Jack" - if you don't pay the top performing staff within an organisation the moolah they are entitled to by contract they will leave - take the core of a workforce away and you're left with a faltering company falling further under, it's vastly more expensive to employ externally and retrain those that would leave - probably cost them more than the amount they're thinking of "giving away" in bonusses anyway.

The majority of the write downs were on ABN Amro's book which was actually nothing to do with RBS until very recently - their due dilligence may have been shoddy but to say they were always in the market of lending to those that least can afford it is BS personally; try the likes of Capital One on for size and you'll see why - and I couldn't get anywhere near my mortgage request with RBS but could get it elsewhere through 3 or 4 banks, so their risk strategy wasn't as risky as some! Not that it means much, they've done what they've done and they're in the position they're in.

People need to step forward and take some personal responsibility also - the consumer wasn't moaning when the store cards, interest free periods, free balance transfers etc were rolling in; no indeed they were off spending. If those type of people overdid it then that's their fault as much as it is those slaggy banks that lent them money.
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Kickstart
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PostPosted: 16:34 - 10 Feb 2009    Post subject: Reply with quote

arry wrote:
People need to step forward and take some personal responsibility also - the consumer wasn't moaning when the store cards, interest free periods, free balance transfers etc were rolling in; no indeed they were off spending. If those type of people overdid it then that's their fault as much as it is those slaggy banks that lent them money.


I largely agree, but those spending on the store cards are not being bailed out. If RBS had gone to the wall (as they possibly would have done without being bailed out) then none of the contractual bonuses would have been worth anything.

Given the current situation I suspect if they had found a legal easy way to avoid giving bonuses I would doubt it would have triggered many to leave, as they would still have a problem finding a job elsewhere.

It is a strange situation. We have an organisation which has made bad decisions and which in most industries would have resulted in them going out of business and resulting in large numbers of unemployed ex staff. But because they have been bailed out they are still in business and can still afford to gove bonuses. No doubt with some of those getting bonuses being those responsible for the banks position. £1b between 30k staff is £33k each on average. Given most will be getting a tiny fraction of that we can only guess at to the size of the bonuses that some will receive.

All the best

Keith
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LeeR
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PostPosted: 16:42 - 10 Feb 2009    Post subject: Reply with quote

Minty wrote:
Oh yeah, I am on top of the world, ma.


Now I know how that feels and I wouldn't wish it on anyone, or begrudge a working bloke his due.

But, if any one goes to work for the bonuses then they're not really in the best of financial positions, and anyone who thinks performance related pay is a good thing is mistaken, but I guess people know this up front when they take the jobs. There are no guarantees.

Minty wrote:
Shhh! Lloyds TSB bought HBOS, not RBS Shhh!

I knew that Doh!

arry wrote:
They are making redundancies, there's a widescale review going on as we type. I doubt that was the Govt's motivation though, I'd have said that had far more to do with them having to stand by their guarantee of savings which would be far more costly to them.


I wasn't defending the government, how could anyone defend this government, but they will always do what costs them the least.

arry wrote:
As for bank clerks and performing - you're welcome to your opinion, I'm not a bank clerk; nor do I work in the banking industry so if it was thinly veiled criticism - I'd suggest aiming it elsewhere Wink


No jibe intended just a light-hearted pun. Rolling Eyes

arry wrote:
Nothing to do with "you're alright Jack" - if you don't pay the top performing staff within an organisation the moolah they are entitled to by contract they will leave...


Won't the "top earners" already be on their way, or are the waiting for their 'performance related pay awards'? Wink

arry wrote:
... try the likes of Capital One on for size and you'll see why - and I couldn't get anywhere near my mortgage request with RBS but could get it elsewhere through 3 or 4 banks...


arry wrote:
People need to step forward and take some personal responsibility also - the consumer wasn't moaning when the store cards, interest free periods, free balance transfers etc were rolling in; no indeed they were off spending. If those type of people overdid it then that's their fault as much as it is those slaggy banks that lent them money.


Couldn't agree more, and I only didn't add it to the discussion earlier as I really didn't want to offend anyone... Shifty
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map
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PostPosted: 16:54 - 10 Feb 2009    Post subject: Reply with quote

I just have a suspicion that the banks are holding onto the money the government has made available so as to boost their own profit figures and hey-presto, 'earn' those bonuses.

No wonder money's so hard to get hold of.

Don't these people realise that bankers are now held in utter contempt, disdain and loathing.

Sorry, while writing that last sentence I realised that they probably do know that and don't really care for anyone else.

Rolling Eyes
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Kickstart
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PostPosted: 17:03 - 10 Feb 2009    Post subject: Reply with quote

map wrote:
I just have a suspicion that the banks are holding onto the money the government has made available so as to boost their own profit figures and hey-presto, 'earn' those bonuses.


Not so sure. Fairly obviously not profits.

Personal feeling is that the banks for years have spent a hell of a lot money covering each others backs. Basically insuring each other by selling each other bits of business. Now they have no idea what they own as it has all become far too complex for them to figure it out. Thus they don't dare buy or sell more loan business to each other. Reality is that they are no more at risk than they were before, just that they have realised what that level of risk is and how pointless it is to sell and buy that risk on a large scale.

All th best

Keth
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pa_broon74
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PostPosted: 17:10 - 10 Feb 2009    Post subject: Reply with quote

Rank and file staff should get the bonus' as it wasn't their fault this happened. They are also afflicted with the same financial problems we all are.

Those responsible for setting policy should forgo it, I suspect they'll be able to get by without it.

Personally, I think about what I'd do if I was the same position. Since i'm not particularly ambitious, I'd probably be some lowly IT gimp or a teller, I'd take the bonus. If I doctored my CV and managed to get into a position where I was setting policy (obviously if I was, this crisis would never of happened, Wink ) I like to think I'd forgo it.

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map
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PostPosted: 17:27 - 10 Feb 2009    Post subject: Reply with quote

Kickstart wrote:
map wrote:
I just have a suspicion that the banks are holding onto the money the government has made available so as to boost their own profit figures and hey-presto, 'earn' those bonuses.


Not so sure. Fairly obviously not profits....

Normally Keth (sic Wink) I'd agree.
However, you have made the mistake of looking at the issue like a rational human being.

By the time the accountants have shuffled it about and laundered the money I doubt even the most dedicated forensic accountant could work out black from white and how that profit column got so big Wink

...but then that's the demoralised skeptic in me writing, I'm sure they'll all decent law abiding chaps and chapesses Rolling Eyes (where's the yeah! right! emoticon when you need it?)

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Skudd
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PostPosted: 18:01 - 10 Feb 2009    Post subject: Reply with quote

The company I used to work for paid a bonus, but the company had to hit its profit margin, the store had to hit its profit margin and it was based on performance as well.
To get full bonus you had to hit all three, if the company didn't hit its profit target but the store did then a reduced bonus was given, but it was still on performance. if the company hit bonus but the store didn't then no bonus at all no matter how good your performance was, it was just tough.
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