Good Value for the Taxpayer??
#1
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Good Value for the Taxpayer??
RBS Cheif Steven Hester's £963,000 bonus on top of his £1.2 salary generated £2bn profit for 82% publicly owned bank in 2011 under his leadership. Good value for the tax payer? Discuss......
http://www.bbc.co.uk/news/uk-politics-16752358
http://www.bbc.co.uk/news/uk-politics-16752358
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RBS Cheif Steven Hester's £963,000 bonus on top of his £1.2 salary generated £2bn profit for 82% publicly owned bank in 2011 under his leadership. Good value for the tax payer? Discuss......
http://www.bbc.co.uk/news/uk-politics-16752358
http://www.bbc.co.uk/news/uk-politics-16752358
Thats a nice "hit and run" post you made there
And to answer the question.....NO
Last edited by ALi-B; 27 January 2012 at 10:58 AM.
#7
You are employed to do something for a particular salary and a bonus.
He succeeded, got paid and his bonus. The bonus is in shares. It doesn't say what kind of shares, just the total value. If they are anything like the ones we issue a (small amount) are at $0 cost (i.e. all profit) and the rest at a particular price. In both instances they require the person to stay with the company for the next x (5 usually) years.
I'm really not sure what is wrong with this? £963K is a LOT of money, but if that is in his contract ...
He succeeded, got paid and his bonus. The bonus is in shares. It doesn't say what kind of shares, just the total value. If they are anything like the ones we issue a (small amount) are at $0 cost (i.e. all profit) and the rest at a particular price. In both instances they require the person to stay with the company for the next x (5 usually) years.
I'm really not sure what is wrong with this? £963K is a LOT of money, but if that is in his contract ...
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Mind you every week you read some story about he Olympics which is usually a thinly veiled way to spend yet more money, much of it from the taxpayer. I hope it's a total f**king disaster! Couldn't happen to a nicer city!
Last edited by f1_fan; 27 January 2012 at 11:53 AM.
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You are employed to do something for a particular salary and a bonus.
He succeeded, got paid and his bonus. The bonus is in shares. It doesn't say what kind of shares, just the total value. If they are anything like the ones we issue a (small amount) are at $0 cost (i.e. all profit) and the rest at a particular price. In both instances they require the person to stay with the company for the next x (5 usually) years.
I'm really not sure what is wrong with this? £963K is a LOT of money, but if that is in his contract ...
He succeeded, got paid and his bonus. The bonus is in shares. It doesn't say what kind of shares, just the total value. If they are anything like the ones we issue a (small amount) are at $0 cost (i.e. all profit) and the rest at a particular price. In both instances they require the person to stay with the company for the next x (5 usually) years.
I'm really not sure what is wrong with this? £963K is a LOT of money, but if that is in his contract ...
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RBS Cheif Steven Hester's £963,000 bonus on top of his £1.2 salary generated £2bn profit for 82% publicly owned bank in 2011 under his leadership. Good value for the tax payer? Discuss......
http://www.bbc.co.uk/news/uk-politics-16752358
http://www.bbc.co.uk/news/uk-politics-16752358
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Is that right - please explain? And assuming that you are smarter than a nutless monkey, how much profit have you made in this bailout market?
Hester took RBS from significant loss to a modest profit with strongly improved underlying measures. He got less than half of his contractual bonus that is all paid in shares that will probably not vest for the next 3-5 years.
Seems reasonable to me.
Last edited by Trout; 27 January 2012 at 12:20 PM.
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If not, well done.
If so, be welcome to the bailout club
So I take it from your response that you personally didn't beat the nutless monkey in making profit in this market
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We are being brainwashed into thinking that "to get the right man" to run a company they have to be paid millions. Bollox. I believe there are plenty of sound business people around who would be quite capable of running a company/organisation for a lot less than that.
Cameron is said to be worried that if he upsets RBS then they will all walk out in a sulk. Well I very much doubt that, and, if they did, they could find replacements tomorrow.
Take Barclays for example. I heard it said that they did a "reasonable job". I don't think running an organisation that is top of the complaints league with around 250,000 customer complaints per annum is doing a good job - and £10m for Diamond, a complete and utter farce.
And you shouldn't pay £200k for some dick to run a council, an easy job in my view.
And many folk would walk over hot coals to run the Beeb just for the prestige alone. How much is Thompson paid? My effing money
Now a top medic is worth a lot as was Steve Jobs by way of example. But the rest is a complete con. Supported by the recruiting industry as they make more in fees if salary is excessive.
The sad thing is we put up with all this .........
dl
Cameron is said to be worried that if he upsets RBS then they will all walk out in a sulk. Well I very much doubt that, and, if they did, they could find replacements tomorrow.
Take Barclays for example. I heard it said that they did a "reasonable job". I don't think running an organisation that is top of the complaints league with around 250,000 customer complaints per annum is doing a good job - and £10m for Diamond, a complete and utter farce.
And you shouldn't pay £200k for some dick to run a council, an easy job in my view.
And many folk would walk over hot coals to run the Beeb just for the prestige alone. How much is Thompson paid? My effing money
Now a top medic is worth a lot as was Steve Jobs by way of example. But the rest is a complete con. Supported by the recruiting industry as they make more in fees if salary is excessive.
The sad thing is we put up with all this .........
dl
Last edited by David Lock; 27 January 2012 at 12:37 PM.
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Originally Posted by Trout
So I take it from your response that you personally didn't beat the nutless monkey in making profit in this market
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We are being brainwashed into thinking that "to get the right man" to run a company they have to be paid millions. Bollox. I believe there are plenty of sound business people around who would be quite capable of running a company/organisation for a lot less than that.
Cameron is said to be worried that if he upsets RBS then they will all walk out in a sulk. Well I very much doubt that, and, if they did, they could find replacements tomorrow.
Take Barclays for example. I heard it said that they did a "reasonable job". I don't think running an organisation that is top of the complaints league with around 250,000 customer complaints per annum is doing a good job - and £10m for Diamond, a complete and utter farce.
And you shouldn't pay £200k for some dick to run a council, an easy job in my view.
And many folk would walk over hot coals to run the Beeb just for the prestige alone. How much is Thompson paid? My effing money
Now a top medic is worth a lot as was Steve Jobs by way of example. But the rest is a complete con. Supported by the recruiting industry as they make more in fees if salary is excessive.
The sad thing is we put up with all this .........
dl
Cameron is said to be worried that if he upsets RBS then they will all walk out in a sulk. Well I very much doubt that, and, if they did, they could find replacements tomorrow.
Take Barclays for example. I heard it said that they did a "reasonable job". I don't think running an organisation that is top of the complaints league with around 250,000 customer complaints per annum is doing a good job - and £10m for Diamond, a complete and utter farce.
And you shouldn't pay £200k for some dick to run a council, an easy job in my view.
And many folk would walk over hot coals to run the Beeb just for the prestige alone. How much is Thompson paid? My effing money
Now a top medic is worth a lot as was Steve Jobs by way of example. But the rest is a complete con. Supported by the recruiting industry as they make more in fees if salary is excessive.
The sad thing is we put up with all this .........
dl
#21
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Well Adam Applegarth failed to do so with Northern Rock.
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I think if you work at that level within the organisation, I would argue you would require more than just a sound business acumen to turn around and steer an organisation of this magnitude. A lot of business generated at this level is done via contacts and based on reputation within this industry.
And any CEO should/must have a decent team around him that will have experience and contacts where needed. dl
#25
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Is that right - please explain? And assuming that you are smarter than a nutless monkey, how much profit have you made in this bailout market?
Hester took RBS from significant loss to a modest profit with strongly improved underlying measures. He got less than half of his contractual bonus that is all paid in shares that will probably not vest for the next 3-5 years.
Seems reasonable to me.
Hester took RBS from significant loss to a modest profit with strongly improved underlying measures. He got less than half of his contractual bonus that is all paid in shares that will probably not vest for the next 3-5 years.
Seems reasonable to me.
but what do you get for 1.2million base salary, just the pleasure of his company all day
I thought the concept of a "bonus" was when you achieved above and beyond the norm, which he hasn't really has he
he has broadly done what most people would do -- sack a load of people and close down underperforming parts of the business
not against bonus's but the bar seem pretty low, and I when hear commentators bang on about what he has achieved, I keep going back to the point that he gets paid 1.2 million salary, is none of that stuff accounted for in his base remuneration
Last edited by hodgy0_2; 27 January 2012 at 01:59 PM.
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You have a point of course but the old boys club just keeps it cosy and possibly stifles innovation. Depends of business type I think - look at all the kids who started the technology revolution; just going for it more or less on their own.
And any CEO should/must have a decent team around him that will have experience and contacts where needed. dl
And any CEO should/must have a decent team around him that will have experience and contacts where needed. dl
Last edited by jonc; 27 January 2012 at 01:43 PM.
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You're forgetting about the withdrawing funding for companies even if they are making a day to day profit and ultimately closing them down (so his mates at the big administration firms can asset strip them while making a pretty penny) as well as a woefull lack of interest in loaning money to any small business.
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Make someone king and they'll do things their way.
Goals have to be set that are achievable and rewards reasonable to the class of worker. If we're talking about executives of multi-national, multi-million pound organisations, then it stands to reason they get paid rather more and their incentives are worth potentially, orders of magnitude more.
What would be interesting is a comparison of similarly sized organisations and the bonues paid to top execs. And a description of possible maximum bonuses that have been missed or not accepted over the same timeframe.
J.
Goals have to be set that are achievable and rewards reasonable to the class of worker. If we're talking about executives of multi-national, multi-million pound organisations, then it stands to reason they get paid rather more and their incentives are worth potentially, orders of magnitude more.
What would be interesting is a comparison of similarly sized organisations and the bonues paid to top execs. And a description of possible maximum bonuses that have been missed or not accepted over the same timeframe.
J.