UKFI forces RBS to drop plans for 200% bonuses

RBS will not pay out bonuses in line with its rival banks, after the UK government said it would not support a payout ratio of two times executive salaries.

In a statement to the stock exchange, the board of RBS said it will not seek shareholder approval to pay a 2:1 ratio of bonuses to fixed pay. This comes after UKFI, the investment company through which the government supports RBS, said it would vote against such a move. As such, RBS expects such a resolution would fail and will not bring it at the company's AGM. Instead, the board will ask shareholders to approve bonuses for its executives equivalent to their salaries, using a 1:1 ratio.  The bank said in a statement: "All of our major competitors in the UK and Europe have indi...