Is redundancy the best bet at RBS?

19 February 2009

2 minute read

Comments left on our RBS-related articles in the past few days suggest that in the absence of anything resembling a cash bonus, employees at the bank are now holding out for redundancy packages.

Unfortunately, they may have missed the boat. This time last year, ex-insiders say RBS was paying some of the best packages on the market. One former RBS/ABN employee who was let go in the first round says he left with nine months' salary after receiving a month for every year worked (six), plus various add-ons.

But with as many as 20,000 people at RBS now in danger of losing their jobs, future severance packages are likely to be a lot more frugal. One insider says there are rumours that these too will be capped.

For many RBS employees, the best bet may be to hold on until the bitter end. One non-recipient of a bonus at the bank describes the atmosphere as 'angry' but say there's limited appetite for leaving.

Even RBS' top performing FX staff appear willing to stay put for the moment. An FX headhunter who works with the institution says both BNP Paribas and Citi are selectively expanding their FX businesses and might be interested in picking up disaffected FX staff.

However, he says loyalty to the organization prevails: "RBS is one of the big places to be in FX - it's got a very good name in the market and a lot of people have been there for a long time."

AUTHORSarah Butcher

Global Editor

ex
exemployeetooandsad
11 February 2010
I so agree with 'exemployeeandhappyout 19 Jan 2010'. Having worked in a company taken over by RBS in recent years, the change in ethos was almost immediately palpable, and horrifying.
It's shameful - both what was imposed and what was allowed to be imposed! Those who raised their heads above the parapet were either managed out or halted in what would have previously been a strong career path. As a result, the business is haemoragging some of its greatest assets - so sad.
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ex
exemployeeandhappyout
19 January 2010
RBS was a challenge for those involved in banks taken over - there seemed to be a 'no holds barred' ethos - 'one of the biggest banks in the world so lend like one with confidence' and if you didn't and acted prudently, you were seen as not being progressive and were sidelined ...or replaced....sometimes by an original RBS employee who was 'fully indoctrinated' and determined to sing the company hymn loudly and, in line with the recognised and rewarded behaviours, talk up the business ensuring not be seen to criticise it. I've been out of the lending arena for years (well before the takeover) but since, was privy to many senior management conversations where old fashioned prudence was openly disregarded by using sentences such as '....we might have lauded that before, but we have to move with the times...'. 'Be indoctrinated or you career dies' became the way of thinking - brainwashing and fear.
It felt like Germany must have felt like in the 30's and 40's- maybe an extreme example but, for some.... - and Fred Goodwin acted like a dictator - creating the monument of Gogarburn to commemorate him - we were just waiting to see his statue erected.....I wonder was it on order????
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ti
tina douglas
24 November 2009
I have worked for RBS for some time. They are going down the pan. I am fed up off being paid a pittance. Sales targets that are unattainable and when you start performing being investigated and then given the chop.. Just waiting to get out! People being suspended left right and centre. Not a great company to work for.
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EX
EXRBS
3 March 2009
RBS a "Titantic" that was overloaded with too many passagers, heading towards a "death" journey.
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wa
wasanRBSgradin1998nowaredundan
24 February 2009
I was proud to be RBS - but can't believe it's gone down to the enormous tune it has. Whilst I enjoyed the fat of the past 11 years - it was somewhat innocent and naive considering what's creeping so catastrophically out of the woodwork. Fred and Leith et al have much to answer for. GBM was a great place and still has very talented guys and gals. Those who "misled" should be openly and monetarily punshied for destroying a happy House I was please to call "home" quite a lot of the time. I hope the REtail side is strong enough to carry the problems casued within the GBM walls - as I have 10 years of bonuses and profit shares paid in now worthless shares. On the bright side having left I can now enjoy the interviewing and CV prep of a middleaged job seeker!!! Ce la vie. Boom and bust. I've now the opportunity to explore new avenues. I think the good times will come around again - it's whether or not those of us without jobs at the moment can weather it. I do hope so - especially those who didn't contribute to the toxic problems but like good children met and exceeded their targets and got on with their jobs epeciting the parent to reward them for their excellent performance.
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