Banks to reveal bonus payouts and results
British banks are set to reveal their bonus payouts in the coming weeks, along with their results.
Banking giant Barclays will be the first to reveal its results and 2010 bonus payout on Tuesday.
There is still speculation that Barclays is reviewing its bonus structure. Chief executive, Bob Diamond, is understood to be considering paying a large amount of bonuses in special contingent convertible bonds (known as “cocos”) – that are effectively worthless if the bank runs into trouble.
It will reveal further details this week when it publishes its annual results.
However, Business Secretary Vince Cable continues to argue that the bonuses are “offensive”
Speaking to the BBC, Mr Cable said: “The banks are ultimately underwritten by the state. They effectively have a state guarantee and that’s what makes the enormous (bonus) payments so offensive … there will have to be change and it will have to be radical.”
Britain’s top banks have been reported to be paying out a combined £6 billion in bonuses and Mr Cable believes the public will be outraged by the amounts and find it difficult to understand.
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.
Last week, it was revealed that investment bankers at Royal Bank of Scotland (RBS) will share in a bonus pots of around £950 million, while Eric Daniels, outgoing chief executive of Lloyds Banking Group, will receive a £1.45 million shares bonus.
The news comes just days after the Coalition Government finalised a deal with banks on lending targets and pay restraints.