Fri, 1 Jul 2011

RBS staff sell shares

More than half of employee shares awarded at The Royal Bank of Scotland were sold immediately last month, prompting fears of a lack of confidence in the part-nationalised bank.

The development raises questions over whether share-based remuneration motivates employees when a company’s future is uncertain.

The bank, which hit crisis following high-risk investments and an expensive merger with ABN Amro, is now 83% owned by the government. Most of the shares were issued as part of a £1.3 billion bonus pool at the investment bank division for its performance in 2009.