Top bosses at the Royal Bank of Scotland, including chief executive Ross McEwan, will see their paypackets slashed by as much as 40 per cent.
The decision comes as the bank’s performance has suffered for almost a decade.
According to a statement published yesterday (11 May), RBS said the pay cut was in line with the growing consensus on the need to curb excessive executive pay.
Sandy Crombie, senior independent director of the remuneration committee, said the changes meet “various challenges” which have faced RBS over recent years.
“These have led to a degree of complexity and lack of alignment with the bank RBS has become.
“The committee believes the time is right for a new, simpler approach, developed specifically to align with RBS’s culture and our thinking on pay.”
Executive pay has come under increased scrutiny over recent months as the government reviews corporate governance rules.
Prime minister Theresa May pledged to stamp out extortionate pay packets as part of her leadership campaign.
katherine.denham@ft.com
