From The BBC:
Alistair Darling: “What you’re now seeing is a cultural change”
Chancellor Alistair Darling has announced that the government is limiting bonuses paid out to staff by the Royal Bank of Scotland (RBS).
“We want to see a cultural change where short-term bonuses are replaced with incentives for the long term,” he said.
Mr Darling said bonuses at RBS would be cut from the £2.5bn paid last year to £340m. There would be “no reward for people who have failed,” he added.
And future bonuses will no longer be paid in cash, but in shares.
The bank would pay “the minimum it can with regard to its legal obligations,” the chancellor said, referring to the fact that some employees are contractually obliged to receive bonuses.
Addressing concerns that directors are those that have benefitted most from the bonus culture in the past, the chancellor said front line staff would be getting some reward.
“Of course they’ve…