Bailed out RBS pays top staff $2.2m each

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Bailed-out Royal Bank of Scotland risks stoking a furious pay row this week by revealing that more than 300 of its bankers are paid an average of £1 million ($2.2 million).

Chairman Sir Philip Hampton has already admitted that more than 100 staff are paid more than £1 million a year.

New disclosures will show the extent to which high pay is spread throughout the bank, although the average of £1 million among the 300 staff will include many who earned less than that last year.

The bank is also expected to reveal the remuneration of the highest-paid staff who report to the chief executive.

This will put the focus on American banker Ellen Alemany, who runs RBS's US operations and will emerge as one of the highest-paid female bankers at any UK bank; John Hourican, who runs RBS's investment bank; Brian Hartzer, head of its retail bank; and Nathan Bostock, who heads the parts of RBS earmarked for sale or closure.

While none of these individuals will be named, they are among the most senior bankers who do not sit on the board of RBS whose pay details must be revealed under the banks' Project Merlin deal with the Government on pay and lending.

A stock exchange announcement last week began to shed light on those likely to fall under the Project Merlin disclosures as Hourican, Alemany, Bostock and Hartzer were among nine bankers handed shares worth £28 million.

The announcement showed that RBS's chief executive, Stephen Hester, is in line for a pay deal of £7.7 million - a £1.2 million salary plus £2 million bonus topped up by £4.5 million of share awards that will pay out in three years' time provided certain performance criteria are met.

RBS's disclosure of the aggregate pay of about 300 its bankers is being made to meet requirements set out by the Financial Services Authority to provide information about how key employees deemed to be in risk-sensitive roles - known as "code staff" - are paid.

RBS has more code staff than either HSBC or Barclays, the only two other banks to meet this requirement so far, as it appears to have spread the definition more widely than its rivals.

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