Bailed-out British lender Royal Bank of Scotland (RBS) has announced plans to scrap sales bonuses for its employees who work at its retail banks in order to prevent mis-selling.
The move, effective from 1 January 2016, will impact 20,000 employees working across RBS and its sister brand NatWest.
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Under the move, the bank will eliminate incentives for customer facing staff working in branches and call centres, including branch managers, mortgage advisers as well as business managers.
To compensate for the loss of sales bonus, the employees will instead be given an average 5% pay rise.
NatWest and RBS CEO of personal and business banking Les Matheson said: "We’re determined to keep doing things differently but we can only continue to rebuild our customers’ trust if they truly believe that we are focused on helping them with their financial needs. This is why we are scrapping all incentives for customer-facing employees in our Personal and Business Banking business."
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By GlobalData
