“Where the taxpayer owns a large stake in a bank we are saying that no employee should be paid a bonus of over £2,000. People who work hard are seeing billions of pounds of their tax money being paid out and are rightly angry about it. Gordon Brown told parliament that certain conditions would be put in place regarding bonuses in the banks that take taxpayers’ money and it’s quite clear that has not been done. Unfortunately the only action the Government has taken is to announce a review into bonuses which will not report until the end of the year. Because of this dithering we could see bonuses being paid out for a second year to executives in taxpayer owned banks which is unacceptable.”
RBS is apparently limiting bonuses to £25,000. David Cameron says that the limit should be just £2,000.
The Conservatives are saying that the banks should go to the courts if necessary to challenge contracts that involve higher bonuses. This is what a CCHQ press release states:
"If senior traders and managers claim that they are contractually entitled to big cash bonuses, RBS should refuse to pay them, and fight them in court if necessary. A bonus is a payment given when the company does well. RBS would be insolvent without taxpayer support, and the company is projecting an £8 billion loss. Paying bonuses now would make a mockery of the system, and RBS should challenge the contracts on that basis."