........Bailed-out bank wants rewards that are worth TWICE salaries

Royal Bank of Scotland is heading for a political bust-up over moves to pay top bankers bonuses worth twice their salaries. The bank, 80 per cent owned by the taxpayer following its 2008 bailout, is expected to revamp its pay policies after the European Union imposed a cap on banker bonuses. Under the rules, bankers cannot receive a bonus worth more than 100 per cent of their salary. But the cap can be raised to 200 per cent if shareholders vote in favour of a higher limit. New RBS boss Ross McEwan is set to ask shareholders to approve a motion at this year’s annual meeting allowing the bank to do so. A move then would leave the Treasury with the decision whether or not to back the higher cap. The move would apply to bonuses paid for 2014. The bank is watching rivals closely to see what it must do to retain high-flyers. But any move requiring the Treasury to approve higher bonuses is likely to be politically difficult. The taxpayer stake is officially managed by the UK Financial Investments quango, but the Treasury calls the shots over important issues. Lib Dem peer Lord Oakeshott said: ‘A 100 per cent bonus is quite enough for anyone at RBS after the bank’s lamentable performance last year.’.....Read more here