Cameron will be judged by his deeds not his words on RBS bonuses
In the last year RBS's share price has halved and it has missed government targets for lending to small businesses.
But, at a time when it is making thousands of its employees redundant, it is apparently set to pay a bonus worth more than £1m to a CEO already paid a basic salary of £1.2m.
David Cameron has said on numerous occasions that he would stop banks paying out big bonuses. He has also called upon shareholders to stop excessive executive pay.
The Government is the single biggest shareholder in RBS. And the Government is not stopping a bonus which, in tough times when living standards are being squeezed so tight, people will think is neither fair nor right.
The best thing that could happen is that top management at RBS recognises the need for restraint. But if it doesn't happen, David Cameron should act to stop Stephen Hester being paid a bonus of this scale.
David Cameron will be judged by his deeds not his words. And he should adopt Labour's plan for another bank bonus tax to fund 100,000 jobs for young people.
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