RBS bank shareholders back new bonus scheme
Shareholders in the part-nationalised Royal Bank of Scotland (RBS) voted overwhelmingly Wednesday for a new bonus scheme for top bosses, after the bank agreed to look again at a key condition.
More than 99 percent of shareholders backed the new scheme for top managers' remuneration at their annual general meeting in Edinburgh, Scotland.
The scheme attaches a number of conditions to the incentives, including that the share price must hit 50 pence before any money can be paid out.
However, the share price has risen strongly in recent weeks to above the 50 pence target, potentially triggering a massive pay-out.
Amid shareholder anger at the losses they have sustained since the bail-out of RBS, which is now 83 percent owned by the British government, RBS chairman Philip Hampton promised to reconsider the target.
When the new bonus scheme was drawn up, he said, "the share price was sitting at a much lower level than it is today".
He added: "I can confirm that the committee will take these views into account before finalising the target."
UK Financial Investments, which manages the government's stake, said it backed the new bonus scheme.
"We welcome the remuneration committee's assurances that the vesting schedule for the absolute share price measure will take appropriate account of the movement in share price since the beginning of the year," it added.
© 2010 AFP