British government vetoes RBS bankers’ plan to boost bonuses

LONDON – The British government has vetoed a plan by the Royal Bank of Scotland to pay bonuses of up to double annual salaries.

The bank, , which the U.K. bailed out during the financial crisis and now owns a part of, had planned to put the bonus proposal to shareholders.

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The Treasury said there could be no rise in the bonus cap because the bank has not yet completed its restructuring and remains 81 per cent state-owned by the government after a 2008 bailout.

RBS said the decision put it at a commercial disadvantage because it might see top talent flee to competitors as a result.

Authorities have moved to curb stratospheric bonuses after the 2008 global banking crisis.

New European Union rules limit annual payouts to 100 per cent of annual salary, or 200 per cent with shareholder approval.