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Saturday 15th of January 2011
January 12, 2011    

Lloyds’ chief expected to take £2m bonus

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by Kay Murchie

The controversial subject of bankers’ bonuses was reignited again today after reports that outgoing chief executive of Lloyds Banking Group, Eric Daniels, is in line for a bonus of £2 million this year.

Fifty-nine-year-old Daniels, who is to retire in March, is the longest serving CEO at a major British bank.

He has waived his bonus in the last two years but according to the BBC, is not prepared to do so again.

The bank is 41% owned by the taxpayer after its controversial takeover of HBOS at the height of the financial crisis.

Mr Daniels and former Lloyds chairman, Sir Victor Blank, both faced heavy criticism following the controversial takeover of HBOS.

The takeover cost Lloyds billions of pounds as it emerged that HBOS had far more bad debt than originally thought.

However, since the disastrous takeover, Mr Daniels has been recognised for bringing Lloyds back into the black and the Government is expected to make a profit when it ultimately disposes of its stake in the bank.

The bonus for Mr Daniels comes just a day after Barclays chief executive, Bob Diamond, faced a grilling from MPs over his reported £8 million bonus.

Bonuses have been a major issue for some time now and have sparked public outrage since many argued that excessive bankers’ bonuses reward the risk-taking culture that led to the financial crisis.

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