Financial News
- 27 June 2012, 9:56
RBS Boss: Proper Accountability Over Bonuses
The boss of Royal Bank of Scotland and NatWest has told Sky News that senior management will face "proper accountability" over the computer chaos when deciding on bonuses.
Stephen Hester told Sky News City editor Mark Kleinman: "This is about helping our customers through this, fixing the problem and making sure that what we are really here for - our customers - are serviced well.
"Our customers are expecting that, they then expect us to be accountable and so on after that and we will be."
Mr Hester also denied that the software meltdown, which has affected some 16.9 million account holders at RBS, NatWest and Ulster Bank, may have been exacerbated by a lack of IT investment.
Some critics said the group had cut technology and increased foreign outsourcing since being bailed out by British taxpayers.
"I have no evidence of that. The area, if you like, the UK backbone, has received substantial investment," Mr Hester said.
"But things go wrong. Things go wrong in technology. We have to learn the lessons from what went wrong here and try to make them less likely in the future."
The RBS boss said although some minor problems remain for Ulster Bank, both RBS and NatWest have returned to a stronger IT footing.
Although RBS has promised to compensate customers and ensure their credit ratings are not adversely affected, some observers say the next big battle for the banking group is its PR image.
"I think we are well on the road to recovery, and fingers crossed that all the bugs have been got out, but we feel that the corner has been turned," Mr Hester said.
Asked by Kleinman about his position as chief executive in the wake of the banking group's problem, Mr Hester added: "I think the most important thing I or anyone else can do at RBS is to put this thing right.
"There is plenty of time afterwards to say why did this happen, how do we stop this happening, and what's the accountability."
what do you think?
David Wragg
The only people who emerge with any credit are the staff at the branches who seem to be working all hours and no doubt feeling the brunt of customer frustration. I hope they get a decent bonus for this! They should have first of all a back-up system, and before introducing the new system should have checked that they could roll back to the old system. The other problem is that the money they will have to pay out to people who have been charged default sums because their mortage payments have been delayed, or life assurance policies have been cancelled for want of a premium, will push back further the day when the bank can be sold and taxpayers see their investment recouped.
philip
If a customer is late making a credit card payment there is an automatic £12 punishment charge, no questions asked and no application made or permission sought. I wonder if Natwest will be making such a payment to each customer for each payment delayed, without the customer having to apply for it in just the same way that NatWest takes charges - they certainly should!
Michael Hawkins
"I also want to reassure customers that no one will be left permanently out of pocket as a result of this, " lets hope the bank is true to its word - could be a first
lol mcr
If any other industry was run in the same cavalier and feckless way the banks are they'd have gone under years ago. RBS has promised to pay for any fees their customers incur as a result of this fiasco. How can they afford to do this? How ironic that there's not enough money to pay housing benefit for the under 25's but there's always something in the pot for Camerons mates.
Michael Hawkins
"If any other industry was run in the same cavalier and feckless way the banks are they'd have gone under years ago" It is its called the public sector, NHS, Local Government, and to pay for the inefficiencies they just put up taxes
lol mcr
You're right of course Michael, further proving my point
Michael Hawkins
South London Health care trust administrators called in £69 million in debt - NHS at its best
David Wragg
In Japan. for such a disgrace, he would resign!
Michael Mcardle
This comment has been removed for violations of our Terms and Conditions.
happymike CHESTER
He should at lease fall on his sword.
Paul Walsh
"I also want to reassure customers that no one will be left permanently out of pocket as a result of this, " Why has he used this wording, surely the response should be 'we will pay any out of pocket expenses because of our inability to run a computer system without trying it out first, without reservation and the money will come out of the bonus pot that we were going to pay ourselves' Much better in my opinion!!!!
Stuart Harley
...BONUS.......????????? DONT THINK SO !!!!!!!!!!
Michael Dynes
Yes, he should indeed resign. But this is England and he will rewarded with a big fat bonus.
Gillian Stafford
The real sickener Michael is that any amount of complaints and customers outrage will not mean a thing to RBS and absolutely NOTHING will be done.The directors will STILL receive bonuses but some IT manager will probably be getting a good **** kicking right now.
Michael Mcardle
yeah youre right gillian these people dont know the meaning of shame. all they are interested in is how much more money they can grab. i often wonder if their families feel any shame. or are they brought up with the same values. when they read what people think about their husband, father , son etc. or are they willingley turning a blind eye to their greedy morrals
red_lead
i feel so sorry for those people that can not get there own money to feed there kids and family and pay there bills as the fat cat sits in his office with his big bowl of cream. They are not worried about the little people there more worried about there next bonus!!!!! As for the computers going wrong (lol) it is more like the hakers have been having fun and waits for the news to be leaked and the fat cats head on the block!
happymike CHESTER
Internet Banking NO CHANCE ! regular paper statements your own up to date log book ,give these Bankers an inch they will take the lot (their friends in Government will make it legal).
Mikel roi
Perhaps the Boards of all banks should have a couple of wage earners on them? I also think that it is high time that shareholders had real powers to control executive pay. If this Banking group is owned by us - then why do we not have representatives on the board and a say in how OUR bank should be run??
Michael Mcardle
3:08pm on 25/6/2012
just take a look at the pic above . its the typical fat bloated face of over indulgence.a typical banker. this man has failed time after time since taking the plum job at RBS.yet still has the audacity to accept massive bonuses on top of his vastly inflated salary.how fortunate the country and the bank are to have him in charge. when he could if he wanted easily go work elsewhere for a much bigger salary and bonus. yeah right. do us all a favour and go then mr hester you wont be missed i can assure you. how many of us mere mortals get such huge rewards for failure