Barclays and Lloyds face public outrage with million pound bonuses


It has been revealed that Lloyds Banking Group and Barclays are awarding bonuses to star employees worth millions of pounds.

The news comes just 24 hours after Business Secretary Lord Mandelson warned the Royal Bank of Scotland (RBS) about its intention of offering “exorbitant” bonuses to staff.

RBS is also planning to pay staff tens of millions of pounds in bonuses, according to a report in The Times yesterday.

However, Lloyds Banking Group, which received £17 billion of taxpayer support last autumn, and is 43% owned by the Government, is to award bonuses to its senior London-based banking staff.

However, a spokesperson for Lloyds said “former HBOS directors and staff in the HBOS’ corporate banking division will receive nothing and any bonuses paid to Lloyds directors will be in shares and deferred for a year“.

Meanwhile, Barclays is set to make bonus payments over the next few weeks. It is understood that the largest cheques will go to its traders and bankers in its Barclays Capital division.

Last year, staff at Barclays Capital received an average of £182,000 each.

Commenting on the bonuses, shadow chancellor George Osborne said they are an insult to struggling taxpayers.

Meanwhile, Lord Mandelson urged the banks to “be mindful about how this looks and what public opinion will be“.

While the bonus payments are much less than previous years, the announcement is set to spark outrage among the public when it is banks who are being blamed for the recession.

Last month, nationalised Northern Rock sparked outrage after it paid almost all of its 4,500 employees a 10% bonus - an average of £2,000 each.

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