Banks: Pay
Treasury
Andrew Gwynne (Denton and Reddish, Labour)
To ask the Chancellor of the Exchequer whether his Department has any plans to review the pay and bonuses of those working in publicly-owned banks; and if he will make a statement.
Sajid Javid (Bromsgrove, Conservative)
The Government's shareholdings in the Royal Bank of Scotland (RBS) and Lloyds Banking Group (LBG) are managed on a commercial and arm's length basis by UK Financial Investment Ltd (UKFI).
UKFI's overarching objective is to protect and create value for the taxpayer as shareholder, paying due regard to financial stability and to acting in a way that promotes competition.
As an engaged shareholder, UKFI works closely with the banks' management to assure itself of the banks' approach to strategy and to hold management rigorously to account for performance. However, UKFI's role is to manage the investment, not to manage the bank; the bank retains its own independent board and management team for strategic and operational decision-making. Within this overarching shareholder framework, management decisions are for the bank itself without interference from shareholders, including UKFI.