Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner. Facebook Messenger An icon of the facebook messenger app logo. Facebook An icon of a facebook f logo. Facebook Messenger An icon of the Twitter app logo. LinkedIn An icon of the LinkedIn logo. WhatsApp Messenger An icon of the Whatsapp messenger app logo. Email An icon of an mail envelope. Copy link A decentered black square over a white square.

Shareholders cannot bank on lessons being learned over pay

Shareholders cannot bank on lessons being learned over pay

Will they never learn?

You would think that after the banking excesses of recent years some semblance of sense would have prevailed by now. But, sadly, it seems not.

The financial packages of a minority of cosseted executives in the sector still have the ability to make jaws drop.

Taxpayer-owned RBS has handed out £18.25 million in share options to 11 already well-paid directors.

New chief executive Ross McEwan alone will pick up £3m when his shares vest in three years that’s more than 100 times the UK national average wage.

And RBS is far from alone.

Lloyds which, lest we forget, was also propped up by billions of taxpayers’ cash has awarded boss Antonio Horta-Osorio £900,000 in share options on top of his base salary of a paltry £1.1m.

Throw in other incentives and the Portuguese reportedly could take home in excess of £7m this year.

Barclays no stranger to executive pay controversy following the hiring of Bob Diamond in 2010 is topping up chief executive Anthony Jenkins’ package with £950,000 in shares, while HSBC has got in on the act with a £1.7m share award for its CEO Stuart Gulliver.

But for me the real sickener from this year’s round of pay awards was that earmarked for senior Co-op Group executives.

The proposed remuneration for CEO Euan Sutherland who shocked the City by resigning yesterday extended to £3.6m and was made up of a base salary of £1.5m, a £1.5m retention payment, pension contributions and compensation for buying him out of his previous contract.

A further £1.8m including a £900,000 retention payment was heading the way of chief operating officer Richard Pennycook, although his pay as new interim CEO is now unclear.

Six other executives were due to pick up salaries of at least £500,000 each, topped up with retention payments taking them into the seven-figure pay bracket.

This for an executive team at the helm of the mutual during the greatest crisis in its long and proud history.

While the blame for losses that could touch £2 billion may not lie at the door of those individuals, it still seems crass and inappropriate for such large sums to be paid out while an institution built on ethical investment remains on life support.

Inevitably the banks were quick to defend their pay policies, trotting out the well-worn lines that they have to pay the going rate to attract and keep the best talent.

That is an argument I have always found curious as it is not one I have found to be transferable to the majority of other major UK economic sectors.

But in this case it also appears to be a smokescreen for a move to avoid new European Union rules which place a cap on bonuses of 100% of annual salary, or 200% with shareholder approval.

The cap is opposed both by the banks and by the UK Government, which fears London could be hit as a global financial centre if prescriptive limits on pay are introduced.

Personally, that is a position I find difficult to get on board with as the sky-high pay packages seen in the City over the past decade have demonstrably not delivered the financial prosperity that we might have expected they would.

I have said before that a good day’s work deserves a good day’s pay, and success should rightly be rewarded.

But I simply cannot see how pay packages in the multi millions can be justified UK Prime Minister David Cameron gets just over £140,000 for running the country, after all and I would appeal to remuneration committees to show restraint when making settlements.

If sense still does not prevail, shareholders must hold boards to account for their actions by registering their displeasure by voting against excessive pay deals when the AGM comes around.