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Royal Bank of Scotland Share Chat (RBS)



Share Price: 362.80Bid: 361.50Ask: 361.70Change: 0.00 (0.00%)No Movement on Royal Bank Scot
Spread: 0.20Spread as %: 0.06%Open: 362.00High: 364.80Low: 360.40Yesterday’s Close: 362.80


Share Discussion for Royal Bank Scot (RBS)


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jings100
Posts: 7,435
Off Topic
Opinion:No Opinion
Price:303.20
HALFMIST / Honestbob
27 Apr '14
Morning ... Just to keep the pot boiling ....From an article by Dr Ruth bender on the pro's and con's of bonuses and bankers remuneration .
Bonuses don’t work

Bonuses don’t work. Oh, they work very nicely to incentivise low-interest, repetitive tasks. But there is research evidence to suggest that they don’t produce the desired results for more complex activities. Indeed, experiments have shown that individuals who are ‘motivated’ by the prospect of financial reward actually do worse at complex cognitive tasks than those without the benefit of an incentive. And top-level banking is a complex cognitive task, in which risk management is fundamental. Given that one reason for the collapse of the financial system was that its participants had misunderstood or wilfully ignored the level of risk inherent in the plethora of financial instruments they were creating, reconstituting the same reward system that contributed to this failure may not be the most intelligent move.
 
HALFMIST
Posts: 158
Answer
Opinion:No Opinion
Price:303.20
Honest bob
27 Apr '14
I agree with you that not everyone is motivated by money. However we are not talking about everyone. I am talking about those at the top of their game who's motivation is money. I would much prefer to pay someone a £1m bonus based on the wealth they create than £1m salary and be useless. However the use of the word bonus seems to grate certain people and I just feel that is very narrow minded. the last person who I would want to tell me what I am worth or what I should be paid is a politician particularly the Cables of this world who have no business experience. As regards would somebody move, of course they would if they were at the top of the game. Where would they go , well for a start Barclays where there is less political interference. The industry know who are the best in the game and they would have no difficulty in moving and this can only be a detriment to the RBS. if a State bank is what is wanted then we should go ahead and nationalise it and leave it to be run by Captain Mannering type Civil Servants. If this was to happen ,you thought the COOP was bad you ain't seen nothing yet.
graftman
Posts: 2,329
Off Topic
Opinion:No Opinion
Price:303.20
oh dear
27 Apr '14
more trouble coming for rbs . Max interviews international businessman and RBS claimant Neil Mitchell about the latest in his high-profile battle against GRG and RBS. He suggests the public move their funds from RBS . http://rt.com/shows/keiser-report/154868-episode-593-max-keiser/
honestbob
Posts: 353
Answer
Opinion:No Opinion
Price:303.20
Bonuses
26 Apr '14
You may well be right and I don't doubt that all staff go to work in the first instance for money to fulfill basic needs etc I suspect though that there is a point where money is not the sole motivator in life for every one and that this point is reached before Bill Gates levels of wealth. In ideal world people motivated by bonuses would recieve an appropriate bonus for correct performance and the correct people would get bonuses .Although as evidenced in Lloyds recently bonuses themselves can cause problems

It is getting it right that is tricky and I do think that any body that is mainly bonus driven will have been able to see that bonuses would be an issue at RBS and already left - if they could find a better paying employer.In which case the bonuses will be needed to attract from other employers and as I don't think employees would go through upheaval of job change for nothing, bonus would have to be higher than they are getting elsewhere

I am in total agreement that in the long run overall package must be market place competitive but whether it is right for the bank or not the tax payer, without whom none of the staff would have a job,is not going to agree to large bonuses. Again rightly or wrongly the government is not going to risk upsetting voters this close to an election - unless I am very mistaken. In which case if there is danger of best staff walking RBS will need another way to motivate them - if there is one.
HALFMIST
Posts: 158
Answer
Opinion:No Opinion
Price:303.20
Honest bob
26 Apr '14
Without sounding mercenary I do think the best staff are driven by money unless you are in the clergy or a missionary. Strictly It is what money buys is the motivation. It allows you to get the best for your family. Once you have everything you could possibly want the monetary gain is no longer the number one target and you can become. Bill Gates and devote. Significant amount of time and resources to giving back I think the flaws in the arguments against giving any bonuses at all in RBS because of past mistakes is it is tarring everyone with the same brush.In my opinion if certain INDIVIDUALS are vital to the recovery of the bank they should be paid accordingly.Putting some artificial bonus cap on ALL staff on moral or political grounds is not in the best interest of the bank, it's shareholders or the taxpayer going forward.
honestbob
Posts: 353
Off Topic
Opinion:No Opinion
Price:303.20
Halfmist
26 Apr '14
I agree you do have to pay a fair rate for the job but I wonder if all of the so called best staff are driven solely by cash benefits of the job. Worth remembering that there were no bonus caps when the share price dropped from six pound to ten pence I think it was 2008 or 2009 or to adjust with like for like sixty pounds to one pound.

I think the Bank has to accept reality it is mainly owned by UK tax payers who struggle to understand why large bonuses are justified with a loss of eight billion pounds. Profits albeit modest need to be made a dividend paid and the company not be owned by the tax payers then large bonuses can be paid again - I am not clever enough to know if this is a good thing sometimes wonder if better to have sensibly paid loyal staff who won't jump ship at the hint of a pay rise.Has anyone heard of top performers deserting due to the bonus cap?
onelongrunner
Posts: 106
Off Topic
Opinion:No Opinion
Price:303.20
Dozen people
26 Apr '14
I wonder how good they were when the share price went to 10p
HALFMIST
Posts: 158
Answer
Opinion:No Opinion
Price:303.20
Bonuses
26 Apr '14
Some very good points made . I think we would all agree nobody should be grossly overpaid for failure. where the line appears to be is how much should success be rewarded. I feel to not reward individuals just because of past errors by others is unfair.I have to agree with Tucson, if the employees make the company more profitable or reduce the loss it would otherwise have made I have no problem with rewarding them accordingly. This appears to be the stance of the Barclays shareholders.
tucson
Posts: 203
Off Topic
Opinion:No Opinion
Price:303.20
Its the marketplace.
26 Apr '14
Moyes fouls up and walks away with 5 mill. The next guy who comes in will also get big money for winning or failing. Why? Because they can dictate the terms as there are probably less than a dozen people in the footballing world that have the skills of Fergie and this is in a game where hardly anybody makes a decent return.
In the case of RBS if you can employ a top team that moves the share price from £3 to £6 ps (or in truth 30p to 60p)
then you have the value of the company increasing by £18794million! My view as a capatilist shareholder is that if they do that and provided the bonus is tied to the SP and the SP stays at or above £6 then they can share £794 million between themselves and good luck. The decision for setting reward and remuneration lies with the board and the shareholders. At the moment a major shareholder is us in the guise of the Government and the Government are playing politics not morals.
NeepHead
Posts: 1,349
Off Topic
Opinion:No Opinion
Price:303.20
The Traveller
26 Apr '14
Not a good day.



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