The issue of bankers’ bonuses is refusing to go away. The latest controversy surrounds whether 81% state-owned Royal Bank of Scotland should ask its main shareholder – the UK government – for permission to allow bonuses to be paid to up to twice base salary. Under EU law, bonuses can only be 100% of salary, unless special agreement by the shareholders is given.
The opposition Labour Party has scented the chance to make political capital by advocating that the government, as RBS’s main shareholder, does not agree, if asked, for the restriction to be lifted.
