Bonus Culture. Has it gone too far?

Surely, the only answer to this question is yes. When Stephen Hester, chief executive of RBS, can be offered nearly one million pounds on top of his salary for managing a failing bank, one would imagine the situation has now reached a state of ridicule. Particularly as the bank is 83% owned by the state, and public pay and pensions for public sector workers is being cut left right and centre. It is rumoured that Mr Hester could receive as much as eight million pounds as a bonus in the future under a long-term incentive plan that gives him a maximum of 375 percent of his annual 1.2 million pound salary, along with other share plans in place, based on RBS' recent stock price of 28 pence.

Should Mr Hester turn around the banks fortunes to enable the government to sell the bank back to the private sector, then I don't think anybody could argue the man would be due substantial reward, but until this happens it must be ludicrous to be handing out millions willy-nilly! Just about everywhere in the public sector has had to make cuts, so why should RBS be any different? There is much talk from the coalition government (which is another blog in itself!) about stamping this kind of culture out, but there seems to be little evidence of them actually doing anything about it. I would say that Mr Cameron and Mr Clegg's days in office are numbered if they do not take action soon, and I don't think you would find too many teachers, nurses, council workers or Police forces across the UK that will disagree.