Bankers Bonus Stephen Hester

[SilverSaloon]

Should he of got this bonus?

Personally I dont think so!

 

[davidjpowell]

Why has Nick not started this thread?

If he's delivering the results, and it's in line with the market for other executives of similar undertakings I don't see the issue.

From his point of view he knows he's going to get it in the neck from the Daily Mail and Jeremy Vine, so he may as well make it worthwhile.

 

[camerafodder]

This is the man who threatened to resign if RBS couldn't pay bonuses to the crooked investment ****ers in 2009 after the crash. Never mind should he get a bonus. Why are he and his team of unscrupulous parasites not in jail?

And no, I don't read the daily mail. I have however corresponded directly with Hester and I was not impressed.

 

[This is Pete]

Bankers bonuses aren't really bonuses in the way that we think of them.

They're just retention incentives.

 

[Palfrem]

In my world we have "avoiding dismissal" incentives

 

[KillerHERTZ]

I dont see the issue, hes transformed the company around hasnt he? its actually less than other executives get isnt it?

 

[Palfrem]

I dont see the issue, hes transformed the company around hasnt he? its actually less than other executives get isnt it?

It's easy to sack thousands of workers

 

[ace571]

Bankers bonuses aren't really bonuses in the way that we think of them.

They're just retention incentives.

True.

But it's crooked way to operate and why banking has such a bad reputation now that these etiquettes of the trade are being made public.

With so many banks being "owned" by the taxpayer, isn't this the best time to bring banking in line with other trades where you earn your money?

They've got away with these practices for too long. Now is the time to bring them into line.

This RBS example just sucks of business as usual.

 

[Harrythedog]

Why can't we tax one-off bonus payments like this at 80%?

 

[davidjpowell]

You do all realise the bonus was in Shares not cash? The worth of his bonus is therefore as tied to the share price as the other shareholders.

 

[Deleted member 37751]

I dont see the issue, hes transformed the company around hasnt he?

Not quite......

(Taken from The Telegraph)


"In a statement on Thursday night, the bank said Mr Hester would get a bonus of £963,000 as the taxpayer-backed lender bowed to political and public pressure to ensure its chief executive was not handed more than £1m.

However, the bank admitted Mr Hester was still potentially eligible for an award under a long-term incentive plan (LTIP) worth as much as £4.8m.

This means his total pay package for last year including his £1.2m salary and £420,000 pension could reach £7.38m.

If Mr Hester were to receive his maximum LTIP grant it would take the total value of the awards made to him since he took over as chief executive in October 2008 to about £27.5m.

The actual value of these awards is likely to be substantially lower than this due to the collapse in RBS's share price over the last 12 months."


So it seems that you CAN be rewarded for failure.....

 

[eternalstudent]

420 K in pension per year....

a lovely thought.

does he deserve it - good question? if he is making money and his share holders are happy and want to keep him then maybe.

Is it worth taxing at 80 % no! what is the incentive to keep the money here if that is the case.

There is a good case to level the tax bracket at 20 % for all and get the rich to keep their money here instead of hiding it away.

His bonus is all in shares, and knowing the crafty Banker he will know how to dodge paying most of the tax!

 

[davidjpowell]

I believe that Gordons' Banker Tax was not particularly successful. In fact while trying to find some facts I discovered that the tax only ever applied to 'discretionary' bonus. So anyone who is entitled through hitting a performance target written within the contract never had to pay it.

Makes it a bit of a mockery really. Typical Labour, all mouth and no bite.

 

[Alfie]

If its part of the contract he negotiated when he started then he is entitled to it. Rightly or wrongly.

 

[Deleted member 37751]

If its part of the contract he negotiated when he started then he is entitled to it. Rightly or wrongly.

What I don't quite understand is how he can get a 'bonus' when the value of RBS has actually DROPPED over the past twelve months.

How would that come about in his contract negotiations?

If he'd have 'turned the company around' so to speak, fair enough, but it doesn't seem that way.

 

[davidjpowell]

What I don't quite understand is how he can get a 'bonus' when the value of RBS has actually DROPPED over the past twelve months.

How would that come about in his contract negotiations?

If he'd have 'turned the company around' so to speak, fair enough, but it doesn't seem that way.

It's also now in Profit. There must be some targets set in his contract, and he has presumably met them. I'd imagine he's on danger money also - who'd want his position. (apart from me anyway!)

 

[janner]

You do all realise the bonus was in Shares not cash? The worth of his bonus is therefore as tied to the share price as the other shareholders.

Presumably to avoid paying NI contributions on the bonus?

 

[stevieb15]

It's easy to sack thousands of workers

No it's not

 

[Mr E]

does he deserve it - good question? if he is making money and his share holders are happy and want to keep him then maybe.

That's the big "if" - on the one hand Cameron says that shareholders need to keep a tighter grip on executive pay and then, on behalf of the majority shareholder, waves through a bonus that many think is exessive.

Shares are down 35-40%, so he's not exactly delivering value to shareholders. Perhaps this quote from the FT is closer to the mark:

"he (Cameron) feared the RBS chief executive and board members might quit if the bonus was scrapped."

Greedy, feckless, amoral banker?

 

[Deleted member 37751]

It's also now in Profit. There must be some targets set in his contract, and he has presumably met them. I'd imagine he's on danger money also - who'd want his position. (apart from me anyway!)

Do you mean it 'made' a profit but it's balance sheet is still in the red, or that it's now completely debt-free and made a profit?