Acronym Sunday
I would like to congratulate the BBC, its allies and its enemies in the UK media. They have united to make me feel sorry for a banker. I’ve just heard Susanna Reid announce that Stephen Hester, the CEO of RBS, is coming under ‘increasing pressure’ to renounce the share bonus, worth almost £1m, to which he appears entitled under the terms of his employment with the bank. But where does that pressure originate, and who is generating it? In fact it is among others the BBC itself, in sending reporters out to vox-pop men and women in the street, none of whom seem to have a rolled up copy of the FT under their arm, putting the simple question, ‘Do you believe that Banker X should receive a bonus of a million pounds?’ If any of those interviewees have seen the individual’s contract of employment and the bonus triggers built in, their opinions will have some merit. Those who have not might as well be shouting up the chimney for all their views are worth. Our lavishly funded public broadcasting service is becoming to the improvement of standards in public debate as Pol Pot was to population growth in Cambodia.
I have no specific view on Mr Hester’s situation, as I am not an RBS customer, and I haven’t seen his contract. (I might be jealous of the guy, and I might have disliked his bank from the day George Mathewson walked though its portal, but those are two other issues, and neither is relevant.) However I do believe that it is reasonable for a person’s reward to be related to the size and performance of the business which he or she runs, or to the profit that she or he generates by his or her efforts. It’s even more reasonable when that reward is in shares, thus motivating the recipient to work even harder to grow the business in question, and increase its capital value.
Finally, two people stand out in current debate as positively dripping in ordure. One is Sir Philip Littlehampton, the chairman of RBS, who has stabbed his colleague neatly in the back, by declining his own bonus. The other is Ed Miliband, the snivelling weasel who currently leads what is left of the Labour Party, a man who as a vassal of the former Prime Minister, Gordon ‘Captain Barbossa’ Brown, effectively gave his approval to Mr Hester’s deal when he was recruited to replace ‘Sir’ Fred Goodwin, and who is now berating the Prime Minister for not welshing on the agreement that he nodded through. This tells me that the word of Ed the Red is not worth the paper on which it’s written. Also, it leaves me observing that every time he opens his mouth, he makes David Cameron statesmanlike by comparison; quite an achievement.
Quintin Jardine's blog 
It seems Ed Miliband and certain sections of the media won’t be happy until Stephen Hester is forced away to another bank; one, presumably, that will offer him more cold hard cash than aggro.
If he does decide to stay, fair play and good luck to him.
Hello
When I first started work (at Natwest I might add) many years ago the very first lesson was one of confidentiality, in particular somebody else’s salary. My parents view was worry only about what you were getting paid. I whole heartedly agree with your Sunday message.
I just wonder if we will now see Stephen Hester walk away. Lets hope not!!!!!!
From what I’ve read of Hester’s career, he’s not a genius but a sound pair of hands, maybe not the sort of guy who’s going to be headhunted by J P Morgan. Another amazing soundbite from the idiot Miliband though. He never misses an opportunity to chuck invective at David Cameron, who has the good sense to ignore it, mostly, and let people see for themselves what it is. I’m looking forward to Ed involving himself in the London Mayoral election. Boris will squash him like a fly.