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Friday 11th of February 2011
February 7, 2011    

UK bank bosses in line for £6bn bonuses

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by Kay Murchie

The controversial subject of bonuses has emerged again today after the Sunday Times reported Britain’s top banks will pay out a combined £6 billion in bonuses.

The report comes despite the Government’s clampdown on bonuses as it endeavours to negotiate with the banks to commit to lending targets for small businesses and restraints on pay.

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.

Bob Diamond, chief executive of Barclays, is reported to in line for a bonus of £9.5 million - despite flat profits at the bank.

Deputy Prime Minister, Nick Clegg, has previously urged bankers to “sensitive to the public mood”.

However, Mr Diamond recently told MPs the “period of remorse and apology” for banks needed to be over.

Meanwhile, Stuart Gulliver, HSBC’s chief executive, is understood to be in line for a £10 million bonus. However, a decision is yet to be made by the bank’s remuneration committee.

Outgoing chief executive of Lloyds Banking Group, Eric Daniels, is also in line for a bonus of £2 million this year.

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

He has waived his bonus for the last two years but according to a recent report by 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.

However, all bank bosses are expected to take their bonuses after waiving them for the previous two years.

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