RBS’s CFO scooped a million pounds more than his chief executive in 2014, its latest financial statements reveal.
Ewen Stevenson, who joined RBS last May from Credit Suisse, was remunerated nearly £3.1m, compared to chief executive Ross McEwan (£1.9m).
Stevenson’s package dwarfed that of his boss due to a £1.9m share award to replace those forfeited on leaving Credit Suisse. His base salary is £497,000, half that of McEwan’s £1m.
RBS posted an attributable loss of £3.5bn for the y/e 31 December 2014, which included a £4bn writedown on Citizens Bank. It also took a tax charge of 31.9bn, which included a £1.5bn write-off of deferred tax assets. However, operating profit for the group was £3.5bn, from a £7.5bn loss a year earlier, reflecting improvement in its core domestic businesses.
Within the group’s risk summary, it warns of the restrictions imposed upon remuneration packages borne out of the implementation of EU-wide prudential legislation.
“…There is now a restriction on the group’s ability to pay individual bonuses greater than fixed remuneration, which may put the group at a competitive disadvantage. An inability to attract and retain qualified personnel could have an adverse impact on the implementation of the group’s strategy and regulatory commitments,” RBS said in its statement to the markets.
Clawback policies, where variable executive remuneration can be retrieved up to seven years after its award, have also been introduced in accordance with prudential rules.