LONDON, May 11 (Reuters) - Royal Bank of Scotland on Thursday said it would shrink incentives for top executives and streamline its pay policy, as the bank seeks to align pay more closely to good behaviour and performance.
The bank said shareholding requirements for executive directors would rise significantly, from 250 percent to 400 percent of salary for the chief executive and from 125 percent to 250 percent of salary for the chief financial officer.
It also said it would reduce the maximum long-term bonus by up to 40 percent, in line with a growing consensus among investors on the need to restrain executive pay.
RBS said its pay policies had become too complex in the past few years.
“The time is right for a new, simpler approach, developed specifically to align with RBS’s culture and our thinking on pay,” Sandy Crombie, the bank’s senior independent director, said in a speech to be delivered at the bank’s annual general meeting in Edinburgh. (Reporting By Andrew MacAskill and Lawrence White. Editing by Jane Merriman)