RBS £2 billion loss posted

The RBS, majority state owned bank, has posted a worse than expected loss of £2 billion, while arguments still rage over staff bonuses in the bank and in general, in loss making companies.

Although the bonus pool has been reduced, nearly £800 million is in the pot of gold, though this is nearly half of the sum distributed last year, when the loss was £1.1 billion.

The problem for any company comes because you need to keep talented staff and how do you remunerate them when they have put in an excellent performance but the company as a whole has not ?

If you have an Investment manager that is at the top of his field and maybe reponsible for making £20 million a year and some create more wealth than that, do you really want to lose this guy by saying "great performance but things are tough out there".

That is the problem companies face and these money making machines need looking after or they will walk.