UK finance ministry opposed RBS 2:1 bonus proposal
LONDON, April 25
LONDON, April 25 (Reuters) - Britain's finance ministry said it agreed with a decision by part-nationalised Royal Bank of Scotland not to seek permission to be able to pay bonuses worth double fixed pay.
The Treasury said on Friday an increase to the bonus cap at RBS, which is still heavily loss-making, could not be justified.
RBS said on Friday that it wouldn't ask shareholders to back the proposal at its annual meeting after UK Financial Investments (UKFI), the body that manages the government's 81 percent stake, said it wouldn't support the resolution.
The Treasury said it would support state-backed Lloyds Banking Group paying bonuses worth double fixed pay, however. The government has begun selling off its stake in Lloyds.
(Reporting by Matt Scuffham; Editing by Steve Slater)