Remuneration Of Royal Bank Of Scotland Chief Executive

EDM number 1723 in 2008-09, proposed by Dai Davies on 22/06/2009.
Categorised under the topics of Financial institutions, Pay and Regulation.

That this House is appalled that UK Financial Investments Ltd (UKFI), the public body created by HM Treasury to oversee the taxpayers' interests in the billions of pounds of public money provided to the failing private banks, has seen fit, on behalf of taxpayers, to endorse the obscene financial package worth 9,600,000 per year to Stephen Hester as chief executive of the Royal Bank of Scotland (RBS), which is 70 per cent. owned by taxpayers; contrasts this utterly unacceptable and incomprehensible UKFI decision with the announcement of RBS a month earlier on 21 May to make redundant 700 workers in the first wave of a planned 4,500 job losses across the United Kingdom, which followed an announcement of 9,000 job losses by RBS in April; does not accept that this absurd level of payment is necessary to incentivise efficient management of RBS, noting that outgoing RBS chief executive Sir Fred Goodwin was paid a massive 4,190,000 a year, and his business decisions brought the bank to the verge of ruin; recalls that Mr Hester told the Treasury Committee on 11 February 2009 `I do think banking pay in some areas of the industry is way too high and needs to come down and I intend us to lead that process'; believes the remuneration package offered to Mr Hester is entirely inconsistent with his own intention; and therefore believes the Chancellor should intervene immediately with UKFI to block this outrageous planned payment to Mr Hester.

This motion has been signed by a total of 45 MPs.