RBS bankers 'able to convert bonuses to cash within weeks'

People in Royal Bank of Scotland (RBS) banking jobs will be able to convert their bonuses into cash 12 weeks after receiving them, it has been announced.

Stephen Hester, chief executive of RBS, wrote to shareholders earlier this week to confirm the plan - which will see its staff in banking jobs initially receiving all of their bonuses in the form of shares.

In the letter, RBS admitted that its decision was "unlikely to please everyone" but argued that the move was a necessary step, describing it as a "well-intentioned attempt to reach an acceptable position for most parties".

Mr Hester has repeatedly argued that RBS must be able to pay high salaries to people in its top banking jobs to avoid a talent drain that would harm the chances of the bank recovering.

Last month, he told a Treasury committee that economic circumstances had changed since the height of the financial crisis - meaning that it was right for RBS to reward well-performing bankers.

Updated: 03 February 2010.
Categories: banking-and-financial-services, market-and-industry-news.