UK City leaders must rebuild trust, restore the City's 'licence to operate'
20 Jan 2011
Tony Manwaring is chief executive of the UK-based business-led non-profit Tomorrow's Company, a 'think and do tank' that works towards creating synergies between businesses, socities and environmental sustainability.
Bankers' bonuses have burst out from the business pages of UK newspapers, and are headline news. The bonus round exposes a deep and raw nerve in British society.
The Royal Bank of Scotland brings these issues into dramatic relief. It is 83-per cent owned by British tax payers, as a result of a £20-billion bailout, one of a number of 'rescues' to prevent the collapse of the UK banking system. Last year, Stephen Hester, the bank's chief executive was 'shamed' to quote one tabloid, the Daily Mirror, into giving up a bonus of £1.6 million.
This year it is reported that he may receive a bonus of £3 million.The Daily Mirror has returned to the fray: ''we say they should give up their obscene bonuses and start living in the real world – like the rest of us''.
The possible £3 million bonus is compared with the record £2.8 million fine of RBS for poor service to customers. Unions speak of the government's 'unconditional surrender', Labour MPs say that such a bonus can't be justified and Prime Minister David Cameron says RBS should be a 'back marker' in terms of this bonus round.
RBS and Hester are not alone in attracting such criticism. The total bonus pot is reported to be £1 billion this bonus round (estimates vary of the size of the 'pot'). Barclay's Bob Diamond could be set to receive a £7 million bonus and recently told MPs, ''There was a period of remorse and apology for banks, that period needs to be over.''
