RBS 'ready for shareholder protest'

18 April 2011

The Royal Bank of Scotland (RBS) is readying itself for investor protests at its general meeting.

Corporate governance advisory group Pensions and Investment Research Consultants (Pirc) condemned the bank's executive pay plans and recommended shareholders make their opposition to such bonuses known, the Herald reports.

Pirc said the long-term incentive of awards up to 400 per cent of salary levels were over the top and maintained RBS is continuing to pay excessive salaries to those at the top-end of the business.

According to the newspaper, executive pay is likely to be the main issue at the meeting, with Stephen Hester, chief executive at the bank standing to earn as much as a £7.7 million payout under the new rules.

Recent research carried out by Ernst and Young on behalf of the Institute of International Finance suggested banks in the UK need to move away from its current culture of risk.

By Tony Aynsley

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