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UPDATE 2-Bailed-out RBS, ING paid top bankers over $1 mln

Published 03/17/2011, 02:01 PM
Updated 03/17/2011, 02:04 PM

* Top RBS investment bankers paid avg $1.9 million each

* ING CEO got 2010 bonus worth $1.75 million

* Dutch politicians express anger over ING pay (Changes dateline, adds ING, background)

By Sudip Kar-Gupta and Gilbert Kreijger

LONDON/AMSTERDAM, March 17 (Reuters) - Bailed-out European banks Royal Bank of Scotland and ING paid many of their top staff more than $1 million each last year, reigniting criticism over bankers' pay.

Dutch opposition parties said in parliament on Thursday they were "shocked" about bonuses that ING had paid to its executive board, which were between 80 and 93 percent of fixed annual salaries or between 600,000 euros and 1.25 million euros ($840,700-$1.75 million).

"People on the street face difficulties. They don't understand this. Don't do this," opposition party Christian Union MP Arie Slob told Dutch Finance Minister Jan Kees de Jager in parliament.

British lender RBS paid an average of 1.2 million pounds ($1.94 million) each to more than 300 senior bankers in 2010, according to its remuneration report on Thursday.

The world's top banks have faced persistent public anger over their pay packages, with complaints that taxpayers' money used to support lenders during the global financial crisis has been used to reward staff with large salaries.

Last week, RBS's British rival Barclays said 231 of its top staff were paid 504 million pounds for 2010, representing an average of 2.2 million each.

Unlike ING and RBS, Barclays did not directly receive any taxpayer money during the crisis, but it did benefit from wider government measures to support the sector.

RBS paid a total 256 million pounds to leading staff at its Global Banking & Markets (GBM) investment banking arm in 2010, the report said.

The 256 million pound figure referred to so-called Code Staff, a term has been used in financial circles to refer to senior executives who regularly take material risks for a bank.

RBS said that 93 Code Staff had been classified as senior management. Outside senior management ranks, there were a further 230 other employees who were put into the Code Staff category.

RBS said aggregate remuneration for Code Staff at the rest of the group, outside its investment banking arm, was 119 million pounds.

This made a total payment of 375 million pounds for top RBS bankers throughout the group, implying an average pay of 1.2 million pounds per senior banker.

BIG PAY DEALS FOR RBS AND ING BOSSES

Last week, RBS said its chief executive Stephen Hester could get a total of up to 7.7 million pounds pay under a long-term incentive pay plan.

Hester's pay drew condemnation from Bob Crow, the chief of Britain's transport union. Crow called it "a savage kick in the teeth that nails the lie that we are all in this together," as Britons grapple with below-inflation pay rises and the government's austerity measures.

RBS was rescued in October 2008 after its finances were stretched by the credit crisis and its part in the acquisition of Dutch bank ABN AMRO in 2007. The British government ended up with a stake of around 83 percent in the company.

The Scottish bank was propped up with a total of some 45 billion pounds of taxpayers' money, causing the eventual resignation of then chief executive Sir Fred Goodwin.

The Dutch state bailed out ING in 2008 with a 10 billion euro capital injection, and it has given guarantees against on losses on 22.2 billion euros worth of U.S. mortgage credit investments.

ING Chief Executive Jan Hommen got a fixed salary of 1.35 million euros in 2010 and bonuses worth 1.25 million euros, of which half was in stock, according to the bank's remuneration report. The other two executive board members received salaries of 750,000 euros and bonuses of 600,000 and 690,000 euros respectively.

($1=.7137 Euro)

($1=.6203 Pound)

(Editing by Erica Billingham)

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