Re: RBS bonuses - "Labour stitched us up" : Sun Jan 29, 2012 6:51 am  

Rooster Booster wrote:

Spoke to a friend today who works for and RBS company here in Oz.

He said that their office in Syd is up for sale as such.

Also said that Hester was brought in when RBS were in the complete poo. And has done a decent job. He could be getting a lot more elsewhere but chose to help out.

Your mate needs to give his head a shake then.

Hester has not only overseen various sell-offs of non-core RBS businesses and the resulting redundancies, he's managed to virtually halve the RBS share price since taking over.

Then compare Hester's remuneration package to that of the head of another bank, who receives a salary of £305k and NO bonuses. Who and what bank?

Mervyn King, Bank of England

Re: RBS bonuses - "Labour stitched us up" : Sun Jan 29, 2012 6:55 am  

Standee wrote:

it is doing better than it was,

Take a look at the share price since Hester took over and then come back

Re: RBS bonuses - "Labour stitched us up" : Sun Jan 29, 2012 7:29 am  

cod'ead wrote:

Your mate needs to give his head a shake then.

Hester has not only overseen various sell-offs of non-core RBS businesses and the resulting redundancies, he's managed to virtually halve the RBS share price since taking over.

Then compare Hester's remuneration package to that of the head of another bank, who receives a salary of £305k and NO bonuses. Who and what bank?

Mervyn King, Bank of England

Similar to Alan Joyce, CEO of Qantas re share price and his remuneration package then. Though Joyce didn't hand back his "well-earned" bonus. He even grounded the entire fleet, but still got more than this Hester fella. See the non-executive directors thread. Apparently hester took this mighty task on, when he could have got a lot, lot more money. Not defending him, just telling you what was said. My mate's job is obviously under threat of redundancy and his company is part of the sell off you mentioned.

Re: RBS bonuses - "Labour stitched us up" : Sun Jan 29, 2012 8:16 am  

Rooster Booster wrote:

Also said that Hester was brought in when RBS were in the complete poo. And has done a decent job. He could be getting a lot more elsewhere but chose to help out.

Sounds like his PR office (who won't be under threat of redundancy for he'll want to hang on to the bonus but not go the same way as Sir (for now) Fred Goodwin) is doing a good job, I almost felt sorry for him for a nanosecond, having to take on a job that was poorly paid but he did it to help out, just like helping out at a Cancer Research shop, or maybe not.

Truth of the matter is he probably was offered all sorts of other posts at the time, but chose the RBS one because in the main people like to stay where they are comfortable, where their family is comfortable and if that means not taking a £2million job in an Arabian country but taking a £1million job in the UK instead then so be it, its a wrench but they'll take the drop in salary (like they are going to notice) and moan about it for years after instead.

Re: RBS bonuses - "Labour stitched us up" : Sun Jan 29, 2012 8:42 am  

McLaren_Field wrote:

Sounds like his PR office (who won't be under threat of redundancy for he'll want to hang on to the bonus but not go the same way as Sir (for now) Fred Goodwin) is doing a good job, I almost felt sorry for him for a nanosecond, having to take on a job that was poorly paid but he did it to help out, just like helping out at a Cancer Research shop, or maybe not.

Truth of the matter is he probably was offered all sorts of other posts at the time, but chose the RBS one because in the main people like to stay where they are comfortable, where their family is comfortable and if that means not taking a £2million job in an Arabian country but taking a £1million job in the UK instead then so be it, its a wrench but they'll take the drop in salary (like they are going to notice) and moan about it for years after instead.

Don't feel sorry. The f¨cker earns enough.

Re: RBS bonuses - "Labour stitched us up" : Sun Jan 29, 2012 8:51 am  

McLaren_Field wrote:

Sounds like his PR office (who won't be under threat of redundancy for he'll want to hang on to the bonus but not go the same way as Sir (for now) Fred Goodwin) is doing a good job, I almost felt sorry for him for a nanosecond, having to take on a job that was poorly paid but he did it to help out, just like helping out at a Cancer Research shop, or maybe not.

Truth of the matter is he probably was offered all sorts of other posts at the time, but chose the RBS one because in the main people like to stay where they are comfortable, where their family is comfortable and if that means not taking a £2million job in an Arabian country but taking a £1million job in the UK instead then so be it, its a wrench but they'll take the drop in salary (like they are going to notice) and moan about it for years after instead.

Aye poor lad.

In the three years since he's been there, he's already managed to trouser £35m

Re: RBS bonuses - "Labour stitched us up" : Sun Jan 29, 2012 10:49 am  

cod'ead wrote:

He will?

How does that work then, seeing as he's being paid his bonus in three-year deferred shares?

He will have to pay both income tax and NI on the value of the shares at the time he receives them. At current rates that would equate to 52% of the value, so his actual net gain would be ~£460k.

Then of course he will have to pay Capital Gains Tax at 28% on any profit he makes if (when) he sells the shares.

Re: RBS bonuses - "Labour stitched us up" : Sun Jan 29, 2012 1:20 pm  

Derwent wrote: He will have to pay both income tax and NI on the value of the shares at the time he receives them. At current rates that would equate to 52% of the value, so his actual net gain would be ~£460k. Then of course he will have to pay Capital Gains Tax at 28% on any profit he makes if (when) he sells the shares. The bonus is in shares, but it is still liable for income tax, payable when the shares are handed over in 2013 and 2014. What Stephen Hester has achieved

Derwent wrote: He will have to pay both income tax and NI on the value of the shares at the time he receives them. At current rates that would equate to 52% of the value, so his actual net gain would be ~£460k. Then of course he will have to pay Capital Gains Tax at 28% on any profit he makes if (when) he sells the shares. The bonus is in shares, but it is still liable for income tax, payable when the shares are handed over in 2013 and 2014. What Stephen Hester has achieved

Re: RBS bonuses - "Labour stitched us up" : Sun Jan 29, 2012 3:37 pm  

cod'ead wrote:

Aye poor lad.

In the three years since he's been there, he's already managed to trouser £35m

£35m how do you calculate that?

Re: RBS bonuses - "Labour stitched us up" : Sun Jan 29, 2012 3:49 pm  

Sal Paradise wrote: £35m how do you calculate that? The £3.3m is on top of Mr Hester's total package of £35.54m since joining the bank in 2008. That year, when the then Labour government bailed out RBS, Mr Hester was awarded £4.99m in restricted shares, forgoing pay and bonuses. In 2009, his package was worth £6.9m. In 2010, his total package rose to £8.16m. Last year, the total was £8.08m, including a long-term incentive plan (LTIP) worth £4.8m, bonus £1.66m and salary and pension contributions. For 2012, the total figure is £7.38m – including LTIP worth £4.8m, his bonus of £963,000 and £420,000 pension contributions and £1.2m salary.. From HERE

Sal Paradise wrote: £35m how do you calculate that? The £3.3m is on top of Mr Hester's total package of £35.54m since joining the bank in 2008. That year, when the then Labour government bailed out RBS, Mr Hester was awarded £4.99m in restricted shares, forgoing pay and bonuses. In 2009, his package was worth £6.9m. In 2010, his total package rose to £8.16m. Last year, the total was £8.08m, including a long-term incentive plan (LTIP) worth £4.8m, bonus £1.66m and salary and pension contributions. For 2012, the total figure is £7.38m – including LTIP worth £4.8m, his bonus of £963,000 and £420,000 pension contributions and £1.2m salary.. From HERE