UK Prime Minister David Cameron said he wanted bonuses at state-controlled Royal Bank of Scotland Plc to be the lowest in the industry, as he called for a decline in overall levels of pay from last year.
“RBS is owned by the government,” Cameron told the British Broadcasting Corp’s “Andrew Marr Show” today. “They shouldn’t be leading the way on bonuses, they should be the back markers.”
The prime minister described as “pure speculation” a report in the Sunday Telegraph that RBS Chief Executive Officer Stephen Hester will receive a 2.5 million-pound ($3.9 million) bonus as part of a 6.8 million-pound package.
“No announcement has been made,” he said. Sky News later said Hester is unlikely to receive a cash bonus, citing people it didn’t identify. Government ministers have spent months urging Britain’s banks to show restraint, warning of a backlash if bonuses go up as the rest of the country begins what Cameron said will be a “difficult year.”
Cameron offered a “settlement” with banks, wherein they would limit pay and increase lending.