To restrain bankers bonuses, the government insisted they should be in shares of the bank which cannot be sold within two years. But their good intentions have come unstuck spectacularly in the last two days, though nobody seems to have noticed yet.
The RBS boss has been awarded £900,000 bonus, paid in shares. When he took the post the shares were low at 47p each, but they are now even lower at 27p due to the current euro problem.
His bonus is being paid in the depressed 27p shares, but in two years time when he will first be able to sell them, it's highly likely that they will be back at 47p or much more. So his bonus will be worth at least £1,500,000 then. Waiting a little longer could result in very much more, given the true value of this bank.
Not what was intended.
The RBS boss has been awarded £900,000 bonus, paid in shares. When he took the post the shares were low at 47p each, but they are now even lower at 27p due to the current euro problem.
His bonus is being paid in the depressed 27p shares, but in two years time when he will first be able to sell them, it's highly likely that they will be back at 47p or much more. So his bonus will be worth at least £1,500,000 then. Waiting a little longer could result in very much more, given the true value of this bank.
Not what was intended.
