The banking giant announced no executives or board members would receive a bonus, no discretionary bonuses would be paid to any staff (only legally-binding bonuses) and all staff will receive below-inflation pay rises.
In a statement the bank announced awards to any staff will be based on sustained long-term performance - not on short-term revenue generation. And the bank's existing profit share bonus scheme has been terminated.
RBS has pledged to review its bonus scheme in the future to ensure it is ‘aligned to the interests of shareholders'.
Sir Philip Hampton, RBS group chairman, said: "The fundamental reform to pay and reward is needed to reflect the reality of the situation the company is in. The board is satisfied this approach will be seen by most reasonable observers to have balanced difficult, conflicting issues.
"Our staff have had to contend with significant anxiety over recent weeks and months over a situation that the vast majority bore no responsibility for creating. We have tried wherever possible to focus the worst impact of the changes on our more senior staff and, in particular, those in the concentrated areas of our business responsible for the major losses recorded on 2008."
No pay rise or bonus for Royal Bank of Scotland staff associated with 2008 losses
Royal Bank of Scotland (RBS) Group announced it will not award pay increases or bonuses to staff associated with the 'major losses' of 2008.
