[Photo: by Ell Brown / Flickr]

Ross McEwan, CEO of Royal Bank of Scotland, is preparing to unveil further cost cutting measures after receiving pay of around £3m in 2016. The cost-reduction measures – to be announced later this month - are expected to coincide with confirmation of his pay deal for the 2016 financial year. McEwan could be paid more than £3m after his £2.7m of salary and allowances are topped up with bonuses.

He has already admitted he will miss his target to cut the bank’s cost-income ratio – a key measure of efficiency – by 2019 because of the vote for Brexit. He had wanted to hit 50% in 2 years’ time, cutting the ratio from above 60%. Analysts now expect him to announce measures to take more costs out of the business.

Speculation that jobs could be at risk have risen since the New Zealander indicated he needed to spell out ways to shed more costs from the bailed-out bank when the 2016 results are published on later in February.

The bank will also unveil its bonus pool for the loss-making year. The pot - which will be shared among staff who also work in NatWest branches, the Coutts private bank and investment banking operation - is expected to be 340m, much lower than the £1.4bn was paid out in 2008. Lloyds Banking Group, where the government stake has fallen to below 5%, is expected to have a larger bonus pool.

McEwan has already taken out almost £3bn of costs since taking over from Stephen Hester 3 years ago. And, he is trying to reach a settlement with the U.S. Department of Justice over the bank's sale of toxic mortgage-backed securities, that could cost as much as £3.1bn.