Post and discuss articles on this blog in in order to help you keep informed of the wider business world. Keeping on top of current events will be especially important at A2.
Stephen Hester is giving up his bonus until he can prove his worth. Lewis' article describes how people are concerned that RBS (which, due to the economic collapse, had to be bailed out by the government last year) are being paid bonuses even though the bank was expected to make a loss of £5 billiion in 2009. If that sounds bad, consider the £24 billion loss the bank made it 2008 (!!!).
Following this article, it turns out that RBS made a loss of ONLY £3.6 billion. Hester and his team were paid £1.3 billion in bonuses in that year. Bankers claim that if these bonuses are not paid, they will lose good, quality people.
This is a very interesting article.
ReplyDeleteStephen Hester is giving up his bonus until he can prove his worth. Lewis' article describes how people are concerned that RBS (which, due to the economic collapse, had to be bailed out by the government last year) are being paid bonuses even though the bank was expected to make a loss of £5 billiion in 2009. If that sounds bad, consider the £24 billion loss the bank made it 2008 (!!!).
Following this article, it turns out that RBS made a loss of ONLY £3.6 billion. Hester and his team were paid £1.3 billion in bonuses in that year. Bankers claim that if these bonuses are not paid, they will lose good, quality people.
http://www.guardian.co.uk/business/2010/feb/25/rbs-3bn-loss-defends-bonuses
This does not have to do so much with the recession, but more about how the general public is enraged over the amount that bankers are paid.