Pressure mounts on Lloyds chief to waive bonus

| February 22, 2010 | 0 Comments
Pressure mounts on Lloyds chief to waive bonus

Over the weekend, it emerged that Royal Bank of Scotland (RBS) chief executive, Stephen Hester, had opted not to take his £1.6 million bonus.

The decision by 49-year-old Hester came just one week after Barclays chief executive John Varley and president Bob Diamond both agreed to sacrifice bonuses for the second year in a row, in light of the “intense public interest and concern” over bankers’ pay.

As a result, Lloyds Banking Group’s chief executive, Eric Daniels, is facing pressure to forgo his bonus in light of the above and in the face of a severe loss at the state-funded megabank.

Fifty-eight-year old Daniels, along with former Lloyds chairman, Sir Victor Blank, both faced criticism following the hasty takeover of HBOS in autumn 2008.

But Daniels is expected to be in line for a £2.25 million bonus payment even though the banking giant is set to report losses of several billion pounds.

For some time now, bank bonuses have sparked public anger and have been the subject of heavy criticism since many believe their risks led to the recession.

Lloyds, which is 41% owned by the taxpayer, will publish its results on Friday and forecasts are for pre-tax losses of at least £4 billion.

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