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* Barclays says five staff paid over 5 mln stg for 2012
* RBS says 1 banker paid over 5 mln stg
* Barclays CEO Jenkins paid 2.6 mln stg for year
* RBS CEO Hester paid 3.3 mln stg for year
* Barclays says 45 pct of investment bankers got no bonus
By Steve Slater and Matt Scuffham
LONDON, March 8 (Reuters) - Britain's Barclays andRBS paid more than 500 staff over 1 million pounds ($1.5million) in 2012, a year when both were embroiled in raterigging and mis-selling scandals.
Both Barclays and RBS are paying out billions of pounds incompensation to customers mis-sold loan insurance and smallfirms sold complex interest rate hedging products and are underpressure to rein in executive pay and cut costs.
RBS, which is 82 percent owned by the UK taxpayer and wasfined $450 million in February over the fixing of Libor interestrates, paid 95 staff more than a million pounds according to itsannual report published on Friday.
One of its bankers earned more than 5 million pounds and 10staff between 2.5 million pounds and 5 million pounds.
At Barclays, some 428 bankers earned one million pounds,though that was down from 473 in 2011, according to its annualreport also released on Friday. Barclays said five staff werepaid over 5 million pounds last year, down from 17 in 2011.
Lawmaker John Mann, part of the opposition Labour party,criticised the payouts.
"It's one rule for bankers and another rule for every otherpart of British industry. There will be a lot of angry smallbusinessmen out there tonight," he said.
Finance Minister George Osborne said the disclosures were apositive development.
"This type of disclosure allows shareholders to properlyhold institutions to account for how they pay their staff," hesaid. "This Government is committed to ensuring that the UK hasthe most transparent banking sector in the world."
Barclays chief executive Antony Jenkins got a package worth2.6 million pounds including shares awarded under a long-termincentive plan.
Jenkins said last month he would forgo his bonus after adamaging year for the bank in which former CEO Bob Diamond andBarclays chairman were forced to quit.
Barclays revealed the pay bands for all its 145,000 staff,fulfilling a promise by new chairman David Walker to providegreater transparency on pay.
The chief executive of RBS, Stephen Hester, waived his bonusafter the bank suffered a computer systems failure which causeddisruption for millions of customers.
Hester's total package for the year was worth 3.27 millionpounds, including basic salary, plus benefits and shares awardedunder a long-term incentive plan.
Barclays' former head Diamond took home 17 million pounds in2011 and was regularly slammed by politicians for the scale ofhis pay.
He quit in July and waived 20 million pounds of unvestedbonuses when he left, and was paid 1.3 million pounds for 2012.He will receive a lump sum in July of about 2 million pounds forhis salary, pension and benefits in the year since leaving.
His successor Jenkins, previously head of retail andbusiness banking, last month said he would axe at least 3,700jobs and prune the investment bank.
He has cut pay for investment bankers, halted speculativetrading in agricultural commodities and closed a profitable taxadvisory unit. He has also pledged higher dividends forinvestors.
Jenkins has said technology will also transform the bank,and recently told investors such innovations could see itsworkforce reduced by around a quarter to 100,000 in thelong-term.
Barclays revealed the pay bands for all its 145,000 staff,fulfilling a promise by new chairman David Walker to providegreater transparency on pay.
The pay included salary, bonus and the value of long-termshare awards.
The new management team has pledged to address culturalproblems at Barclays after criticism it was too aggressive andtook too much risk in the past, but has admitted rebuilding thebank and its reputation could take 5-10 years.
The bank paid out 1.85 billion pounds in bonuses for 2012,down 14 percent on the year.
It said it clawed back 300 million pounds of deferredbonuses and long-term awards to reflect the Libor scandal andother issues.
