16th December 2011
Buried in this week's FSA report on RBS is a telling question on pay. It does not query the huge bonuses given to investment bankers or the smaller payments to their retail counterparts for selling products, which may, or may not, prove best advice. Instead, it questions the role of remuneration in ensuring senior management executive directors remain loyal to the chief executive.
It asks whether "remuneration paid to executive directors (among the highest for major UK banks) may have discouraged robust and effective challenge to the CEO (Goodwin)."