RBS pays directors £10m in bonuses

By Philip Aldrick, Banking Editor Published: 7:22PM GMT 05 March 2010

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Royal Bank Of Scotland Group

John Hourican, arch senior manager of the investment bank, was the most appropriate paid senior manager with a �5.9m bonus. His multiplication done a �5.7bn distinction and gathering expansion in the businesses earmarked as the destiny of RBS. Including bequest bad debts, though, the investment bank done a distinction of usually �1bn.

Mr Hourican"s compensate was significantly reduce than the �9.8m awarded to Stuart Gulliver, head of HSBC"s investment bank.

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Ellen Alemany, head of RBS"s US operations, was the usually alternative senior manager to embrace a reward of some-more than �1m. She was awarded �1.38m.

Although large, the bonuses are calm compared with alternative tip bankers and directors in alternative industries. All 9 will be paid wholly in batch that they can not hold for five years. As the bonuses are theme to clawback, they will not be paid out in full if the bank fails to encounter the targets.

However, they will grow if RBS"s share cost picks up. The awards were done at 37.876p. RBS is 84pc state-owned and the shares need to climb on top of 50p prior to the state will have a distinction on the �45.5bn investment.

Stephen Hester, arch senior manager of the bank, incited down the reward he was offered. The arrangement cabinet is right away operative on a new long-term opening package for him. He was creatively in line for an endowment that would have paid out �6.8m had the share cost strike 70p.

The new understanding is expected to compensate out rounded off the same if Mr Hester hits the targets but will dark opposite the package Mr Hourican has secured. He was awarded 21.3m shares last year at 28.2p, afterwards value �6m and right away value �8.5m, and a serve 7.5m options now value an additional �870,000. None of it vests prior to 2012 and is all theme to opening criteria.

UK Financial Investments, the physique obliged for handling the taxpayers" bank stakes, has privileged all the reward packages.

An RBS orator said: "The house believes that the prospects of liberation are heavily contingent on carrying arrangement policies that are essentially reformed in make up but safeguard that high-performing staff are not disadvantaged by operative at RBS relations to alternative aspirant banks.

"All of the people endangered are new to purpose and have been charged with smoothness of the liberation plan for RBS. The awards are in shares and contingency be defended for a duration of up to five years to safeguard that staff and shareholder interests are aligned."

Alongside Mr Hourican and Ms Alemany, Ron Teerlink, the arch senior manager officee, was awarded a �533,000 bonus; Nathan Bostock, head of restructuring, �437,000; Christopher Sullivan, the arch senior manager of UK corporate, �400,000; Alan Dickinson, who is timid as UK coprorate chairman, �366,000; Bruce Van Saun, the financial director, �362,500; Paul Geddes, arch senior manager of insurance, �300,000; and Brian Hartzer, head of UK retail, �291,000.