13.02.12
Review of public sector bonuses underway
Public sector bonuses are under review, the Government has announced, following public anger over huge bonuses for chief executives.
Stephen Hester, chief executive of Royal Bank of Scotland, recently waived his bonus, worth £963,000, but many other senior bankers will still receive large payments.
Chief secretary to the Treasury Danny Alexander and cabinet office minister Francis Maude have written to government departments asking to review their bonus structures.
This is likely to lead to fewer, smaller payments at bodies with some element of public ownership, including Channel 4, Royal Mail and the Met Office. The BBC could also be affected.
Alexander told the Telegraph: “The idea is to look at the levers government has, to make sure that the remuneration rules are fit for purpose and command public confidence.
“This is not about getting rid of performance pay. It is about making sure that performance pay is there for genuine excellence and not just run-of-the-mill performance.”
The letter states: “The departments will need to apply their own judgment on which bodies to include in the audit but where in doubt, will need to include bodies that are likely to attract public comment.”
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