RBS bonuses crucial to retain key staff, chief executive insists

RBS boss Stephen Hester has insisted the troubled bank has to pay bonuses to keep staff.

The chief executive told the Treasury Select Committee yesterday RBS would pay “the minimum we can get away with in the market place” as shareholders had raised concerns about being able to continue motivating staff without bonuses.

Hester added retaining staff was his “single greatest problem”.

But he would not comment on the total bonus pool the bank will pay, which has been estimated at £1.5bn and will be decided next month, the Daily Telegraph reported.

Hester said a “handful” of bankers would be paid cash bonuses “due to previous legal commitments” but all bonuses for those on more than £39,000 would be in shares – as required by the government.

Overall bonus levels would be set depending on performance and market rates.

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