The Royal Bank of Scotland (RBS) has awarded group chief administrative officer, Simon McNamara, who is responsible for IT at the company, a share allowance worth approximately £400,000.
The allowance follows the award of a £1.75 million bonus to McNamara in March, as part of a share package tied to the bank’s performance over the next three years.
RBS, which is 81 percent owned by the taxpayer, is in the process of reducing its technology platforms by 50 percent in a bid to lower costs by £1.1 billion in IT and operations. The bank is also improving the resilience of its systems, after significant problems with its legacy IT that has led to a number of high profile outages, most notably an incident in the summer of 2012 which resulted in the launch of an investigation by the Financial Conduct Authority (FCA).
McNamara is one of 10 RBS executives given a total of £3.5 million, as part of the payment scheme used by number of banks to evade an EU cap on bonuses. The largest payment, of approximately £533,000, was given to Rory Cullinan, who is in charge of RBS’ ‘bad bank’, according to an SEC filing.
The new EU rules mean that lenders will only be able to pay out annual bonuses equivalent to one year’s pay, or 200 percent if shareholder approval is granted. However, share allowances are not directly linked to financial performance and do not count towards the EU cap.
McNamara joined RBS in September 2013 from Standard Chartered Bank Consumer Bank, where he was CIO since 2008. He has also been CIO at Westpac Bank and Deutsche Bank.
His basic salary at RBS has not yet been revealed, as he joined the bank before its annual report, and the information will not be provided until this year’s remuneration report.
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