Friday, Jan 27, 2012
Well, he didn't get that £1 million bonus
BBC News: RBS chief Hester's £963,000 bonus criticised
Hester has seen the RBS share price tumble but he's got his bonus on top of his £1.2m salary and his Long-term Incentive Plan (not mentioned in the article), which will be worth millions. All the talking heads are saying pretty much what you'd expect them to say, but no analysis of what particular skills he brings that would be difficult to acquire without the big bucks.
Posted by icarus @ 03:41 PM (963 views) Add Comment
12 Comments
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1. icarus said...
...and if the share price rises to what it was when he took over the bonus will be a lot more.
2. taffee said...
typical misdirection...the main problem is not hester, but the BILLIONS paid to the investment bankers
mp expenses was not the problem..it arose as a result of being paid too little after they quashed the firefighters 40% pay increase.62,000 to be an mp is ridiculously low
expenses were widely seen as okay to exagerate
the real problem is the lunatic pay of council leaders and civil servants
3. letthemfall said...
"the real problem is the lunatic pay of council leaders and civil servants"
Er, misdirection? Average civil servant pay a bit under £23000 (cf private sector ca £25000).
Council bosses - something like 150 - 200K average. Whether or not you think they're worth it (and you can make a case just as easily as the arbitrary ones for bankers), it's still small beer compared to banks and big companies.
4. will said...
We hear of Mr Hester's pay, but little has been said of his General's renumeration.
5. mr g said...
@LTF "it's still small beer compared to banks and big companies."
I'm glad you said that. Your average of £25k in the private sector is distorted by banks and big companies pay rates, the average pay for many skilled jobs in in the textile manufacturing sector for example is no more than £20k. and a good deal less in some instances.
6. mr g said...
Typo: Should read company's.
7. letthemfall said...
Hello mr g
Well, when averages are quoted, it is usually the median, the figure that divides the population into two, and that is not distorted by high figures. As far as I know, there are no "like for like" comparisons between pay in the two sectors.
Certainly I can believe there is plenty of low pay in the private, since more of the money is being sucked up at the top. However, if you want to compare pay between private and public sectors, a better analysis than averages or medians is needed. Private pay is distorted by a peak of v low paid workers - the cleaners, part-timers, shop workers ... - and hence the averages quoted are misleading and low. If one were to compare skills and qualifications in these averages, I suspect the public would be the lower paid.
But few are interested in such figures. These are picked and propagated to suit the political agenda.
8. richc said...
Seems a bit rich coming from the BBC where the Director General saw nothing wrong with taking a £900,000 salary. This for an organization with about 10,000 employees. RBS employees 150,000 people, with a budget (as measured by revenue) that's at least 5 times bigger.
9. Simon said...
Letthemfall .
Even with low 80ths accrual rate , the defined benefits pension brings the civil servants £23,000 gross up to a total package of over £30,000 .
Private sector workers don't have access to proper pensions so the civil servant is making 20% more than the private sector worker .
The civil servants £23,000/30,000 average package is very low when compared with for instance police sergeants who would be deep into the 40% tax band if the true cost of their pensions was acknowledged .
10. Garf said...
We're told that the city pays big bonuses to ensure that people with uncommon talent will stay in those jobs. But I think a lot of us are looking at those people and struggling not to sound like Yosser Hughes: "I could do that."
11. mr g said...
@LTF
My example really has nothing to do with “more of the money is being sucked up at the top”
Yes, fortunes have been made by business owners in the textile industry in the past and there are still a number of well remunerated people in the trade in the UK but having said that and I speak from personal experience, there is no comparison with the salaries earned in other parts of the private sector or indeed the top grades in the public sector.
The jobs I referred to may be “old fashioned” compared to jobs in the “new economy” but nonetheless they still require a considerable amount of technical skill, knowhow and supervisory or managerial experience yet the rate of pay is well below that of many jobs in the public sector let alone the private sector.
No disrespect to the firm concerned, a typical example is:
http://www.cv-library.co.uk/cgi-bin/view-job.cgi?jobref=116129832&s=100320
12. mr g said...
@LTF
A footnote.
I'm not criticizing the public sector per se, what annoys me are some of the private sector salaries earned by what I perceive to be non productive and non essential jobs in, for example, the "media"