FTSE 100 movers: RBS hit by bonus veto

2nd Dec 2009 15:18

Royal Bank of Scotland leads the fallers after the shock revelation that the government has taken over its bonus pool as part of its signing up to the UK toxic asset scheme.RBS said the UK Financial Investments, which manages government holdings in state-controlled banks, now has "the right to consent to the quantum and shape of the 2009 bonus pool.""This requirement may adversely impact RBS's ability to attract and retain senior managers and other key employees and thereby place RBS at a significant competitive disadvantage against its competitors," the bank said in a circular ahead of a shareholder vote on its joining the scheme. The government could end up owning 84% of the bank if the deal is approved.RBS's other shareholders meet on 15 December to decide whether to rubber stamp it joining the APS.In a buoyant mining sector, Lonmin and Kazakhmys are going well while the India-focused miner Vedanta has got an additional lift from a 'buy' recommendation by Goldman Sachs. FTSE 100 - RisersLonmin (LMI) 1,909.00p +3.13%TUI Travel (TT.) 249.60p +2.59%Kazakhmys (KAZ) 1,313.00p +2.58%Vodafone Group (VOD) 143.45p +2.46%Vedanta Resources (VED) 2,444.00p +2.43%Sage Group (SGE) 219.70p +2.33%Autonomy Corporation (AU.) 1,474.00p +2.22%Amec (AMEC) 828.00p +2.03%FTSE 100 - FallersRoyal Bank of Scotland Group (RBS) 32.59p -4.87%Legal & General Group (LGEN) 75.30p -2.65%Severn Trent (SVT) 1,023.00p -2.48%London Stock Exchange Group (LSE) 746.50p -2.42%Cairn Energy (CNE) 3,072.00p -2.35%National Grid (NG.) 653.50p -2.17%Resolution (RSL) 82.95p -1.95%Lloyds Banking Group (LLOY) 53.27p -1.61%