Bankers' bonuses damaging party reputations

London 2 February 2012 – PR Leaders’ today highlighted the negative impact that the row around Stephen Hester’s £1m bonus has had on all institutions involved. Since the financial crisis, which saw the public bailout of RBS in 2008, City bonuses have come under increasing scrutiny in the context of wider economic challenges. In spite of Mr Hester’s announcement that he would forego his bonus, the reputations of the City and all political parties have suffered.


Francis Ingham, PRCA chief executive, commented “The Government attempt to firewall itself from the bonus blame has clearly failed. Interestingly Labour HQ should not be popping the Cava corks – Labour has emerged damaged too, albeit slightly less so. And of course the City as a whole has been hurt also.
 

“All in all, a bit of a circular firing squad.”
 
Leaders' Panel Results

Since the financial crisis, which saw the public bailout of RBS in 2008, City bonuses have come under increasing scrutiny in the context of wider economic challenges. Last week RBS announced it was awarding Stephen Hester a £963,000 shares-only bonus payment. Today, he announced he would not be accepting such a bonus. Please let us know how this story has affected the following institutions:

  • The City – net 68% negative
  • The Coalition Government – net 63% negative
  • Labour – net 10% negative
  • RBS – net 61% negative

Sample: 46

Notes to editors

Richard Ellis, communciations director
T: 020 7233 6026 ¦ M: 07779 102 758 ¦ E: richard.ellis@prca.org.uk

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