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RBS pay restrictions lead to loss of talented staff to competitors
ROYAL Bank of Scotland has lost more than 700 of its top investment bankers to rivals as it labours under government restrictions on compensation policy.
The bank cannot pay cash bonuses this year as a result of the government bailout which has left it 70 per cent owned by the Treasury.
Rivals are understood to have taken advantage of the situation to offer higher salaries and guaranteed cash awards to bankers in its commodities, fixed income and credit derivatives teams.
Modest pay policies at the bank clash with what is likely to be a bumper year for competitors. Barclays Capital and Goldman Sachs have both benefited from increased revenues and are expected to pay out large bonuses at the end of 2009.