RBS board braced for revolt on executive pay
There is potential for fiery scenes at Royal Bank of Scotland's annual meeting as losses at the taxpayer-owned bank show little sign of easing.
There is potential for fiery scenes at Royal Bank of Scotland's annual meeting as losses at the taxpayer-owned bank show little sign of easing.
Management and investors will gather for the 2016 AGM at the RBS Conference Centre in Edinburgh at 2pm.
On Friday RBS reported a first-quarter pre-tax loss of £968 million - more than double last year's figure of £446 million, so the board will be braced for a revolt over executive pay.
The loss reflects the impact of its £1.2 billion payment to the Treasury to buy out a crucial part of its £45 billion bailout when it was saved from collapse in 2008.
This comes after the bank, which is 73% owned by the taxpayer, racked up its eighth consecutive year of annual losses and delayed prospects of a dividend payout in February.
However, chief executive Ross McEwan saw his total annual pay package double to £3.8 million as it included long-term incentive payouts for the first time.
Last month RBS warned of a greater-than-expected hit from plans to spin off its Williams & Glyn arm that could fetch as much as £1.5 billion.
The group also said there was a "significant risk" that it would not meet the deadline to separate the 316-branch Williams & Glyn business by the end of 2017.
It is now looking at other ways to spin off the business, adding that the "overall financial impact on RBS is now likely to be significantly greater than previously estimated" due to complexities of separating the business.
The bank has also said it faced uncertainty over the scale of US misconduct charges still hanging over the lender.
Investors had hoped to see the bank pay its first dividend this year, but the bank said delays over the Williams & Glyn sale and its regulatory fines will mean that a shareholder payout is not expected until later in 2017.