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Bank chief admits sector's pay is too high
Accountancy News |
30/04/2010
The chairman of the Royal Bank of Scotland (RBS) has admitted that bankers earn too much in comparison to other workers.
Speaking to BBC Radio 4, Sir Phillip Hampton said that it is difficult to defend the huge differences between bankers' pay and the UK's average wage.
However, he said that generous pay packets are needed to prevent their best staff members seeking employment with rival firms.
"If we don't pay our top people [appropriately], they leave very quickly," he said.
"Our top people are very much in demand and we have seen a significant loss of our top people."
The part-nationalised RBS is 83 per cent owned by taxpayers after it was bailed out by the government during the financial crisis.
Earlier this month, figures from the Centre for Economic and Business Research highlighted that the bonuses paid out to bankers are likely to hit £6.8 billion this year, up from £6 billion in 2009.
Posted by John Lynes
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