UK
Has RBS whacked up its benefits package?
27 May 2009
While plenty other banks are increasing salaries, political sensitivities mean the salary hike option may not be on offer at RBS. This is despite the admirable performance of the global banking and markets division in the first quarter.
Instead, rumour has it that RBS is being rather more lavish with its flexible benefits. According to headhunters, several people in the global banking and markets division have seen the amount of money they've got to spend on cars, medical benefits and the like increased from £11-25k.
"They're trying to keep people happy without being seen publicly to be increase pay," says one headhunter. "They're hyper-sensitive about it."
RBS didn't immediately return a request to comment on the issue. However, Stephen Hester has already admitted that the bank is paying guarantees to retain key staff. And another headhunter says that members of the bank's FX team have been told that higher basic salaries are on the way.
Why not take a play from CS on this one - increase pay, but pay in the form of distressed assets. Politically, could spin it as a case of reaping what you sow. Privately, of course, many of these assets are recovering.
djm 27 May 2009
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