RBS bonuses 'will be minimum level'
Bonuses for investment bankers at part-nationalised Royal Bank of Scotland will be "the minimum we can get away with", the group's boss has said.
Chief executive Stephen Hester ducked MPs' questions on the planned level of payouts, saying it would be "irresponsible" to reveal estimated figures.
He told the Treasury Select Committee that he was "not going to pay a penny more than we need to", amid mounting concerns over payouts ahead of the US bank reporting season, which starts with JP Morgan Chase on Friday.
Wall Street is expected to hand out multibillion-dollar bonus pots and there are fears that UK banks will come under pressure to follow suit.
Mr Hester admitted that RBS - now 84% owned by the taxpayer - was "prisoner to the marketplace", but said windfalls would be minimal when revealed at the end of February.
"It is my duty as chief executive to protect shareholder interests and pay the minimum bonuses that our group can get away with - consistent with motivating and keeping good staff," he said.
The Commons hearing heard that the restructuring at RBS was well-ahead of expectations, with Mr Hester confirming targets for the Government to begin offloading its stake within three to four years.
Its balance sheet has already reduced by two thirds - with £500 billion of assets now gone - and the major recapitalisation moves to strengthen finances already completed.
But RBS is set to miss Government targets on lending to UK businesses, blaming a lack of demand among recession-hit firms.
