RBS managers are attempting to prevent widespread resignations following the announcement of the bank’s new strict bonus policy.
City headhunters have said they have been inundated with applications and CVs from RBS bankers after the company agreed to not pay any cash bonuses this year, the Daily Telegraph has reported.
Under the new bonus system, bankers earning more than £39,000 will receive 50% of their bonuses in 2010 in shares or bonds, and the rest will be deferred over the following two years.
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John Kingman, the outgoing chief executive of UK Financial Investments, told a Treasury Select Committee that the government was “walking a tightrope” on bank bonuses.
He added: “We cannot afford to be in a position where the banks lose so many people that we start to lose serious value.”
