British government vetoes RBS bonus plan

LONDON (AP) -- The British government has vetoed a plan by part-nationalized Royal Bank of Scotland to pay bonuses of up to double annual salaries.

The bank had planned to put the bonus proposal to shareholders.

The Treasury said there could be no rise in the bonus cap because the bank has not yet completed its restructuring and remains 81 percent state-owned after a 2008 bailout.

It said Lloyds Bank, which is 25 percent state owned, would be allowed to seek the 2:1 bonus ratio because it had almost finished restructuring.

RBS said the decision put it at a commercial disadvantage.

Authorities have moved to curb stratospheric bonuses after the 2008 global banking crisis. New European Union rules limit annual payouts to 100 percent of annual salary, or 200 percent with shareholder approval.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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