The boss of the RBS is to get his bonus in shares.
Share prices in RBS are exceptionally low at present but that is nothing to do with his stewardship, apparently, and so he deserves(!) his bonus. I’d like to know how he qualified for this bonus.
What criteria were set that he has been able to meet?
Why has no-one asked or answered this point?
Obviously the anticipation is that he will be motivated to see the bank run more profitably, so that these share prices will rise and thus increase his pay-out, when he sells the shares.
The assumption is that he is an honourable man.
That he didn’t take measures to depress the share price, prior to his award and that he won’t indulge in artificially bumping the share prices, when it comes to time for him to sell them.
[I was told eons ago that the simplest means of doing this is by sacking staff and selling stock in January, before the end of the financial year, then rehiring and re-stocking in June after the budget figures have been released and the share prices boosted.]
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Tags: RBS bonuses, share price rigging, Stephen Hester
This entry was posted on January 28, 2012 at 11:38 am and is filed under comments, politics, prognostications. You can follow any responses to this entry through the RSS 2.0 feed.
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When bonuses are paid in shares, it risks share price rigging, so why do it with RBS?
The boss of the RBS is to get his bonus in shares.
Share prices in RBS are exceptionally low at present but that is nothing to do with his stewardship, apparently, and so he deserves(!) his bonus. I’d like to know how he qualified for this bonus.
What criteria were set that he has been able to meet?
Why has no-one asked or answered this point?
Obviously the anticipation is that he will be motivated to see the bank run more profitably, so that these share prices will rise and thus increase his pay-out, when he sells the shares.
The assumption is that he is an honourable man.
That he didn’t take measures to depress the share price, prior to his award and that he won’t indulge in artificially bumping the share prices, when it comes to time for him to sell them.
[I was told eons ago that the simplest means of doing this is by sacking staff and selling stock in January, before the end of the financial year, then rehiring and re-stocking in June after the budget figures have been released and the share prices boosted.]
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Tags: RBS bonuses, share price rigging, Stephen Hester
This entry was posted on January 28, 2012 at 11:38 am and is filed under comments, politics, prognostications. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.