02-09-2011, 09:51 PM
Direct Action Resistance Fighter
Joined: Aug 2006
RBS's Stephen Hester and Lloyds' Eric Daniels accept multi-million pound bonuses
Quote:In his first payout since being parachuted in to run RBS in October 2008, Stephen Hester is to be handed £2.04m.
Mr Hester - whose pay for this year will remain at the level set in 2008 - will receive his bonus in stock, which wll be deferred for three years, following consultations with shareholders.
Eric Daniels, the outgoing head of Lloyds, is to receive a £1.45m bonus. He is also receiving his award in shares, and, like Mr Hester's, it will be deferred for three years.
Lloyds and RBS - which are 41pc and 84pc owned by the taxpayer respectively - said cash bonuses for 2010 payouts would be limited to £2,000.
The awards came as the Chancellor urged the country to put an end to banker bashing and move "from retribution to recovery".
Mr Osborne told the House of Commons: "The anger at the terrible mistakes of the banking industry and the failure of those who regulated it will long remain, and rightly so.
"But let us as a country confront this hard truth - anger and retribution will not bring one percentage point of growth or create one job. The anger will remain and we must never make the same mistakes again, but Britain must move from retribution to recovery."
Under the deal reached this morning with Barclays, Lloyds Group, RBS and HSBC, total bonuses for UK-based staff will this year be lower than in 2010. It was reported that Lloyds is to award outgoing chief executive Eric Daniels a £1.45m bonus for 2010, all of it payable in shares and deferred until 2013.
The four banks, as well as Santander, have also committed to make £190bn of new lending available to businesses, including £76bn specifically targeted at small and medium sized companies.
They will also contribute £1.2bn towards the regional economy, including £200m to capitalise a new Big Society Bank.
Banks will also be required to publish details of the pay packages not only of board members but also the five highest-paid executives outside the board.
In addition the Government will look at whether from 2012 all UK banks should be required to publish the pay of both their board and their eight highest based senior executives.
The pay of bank chief executives will be part be linked to meeting the new lending targets and Mr Osborne said the Government “reserved the right” to re-examine the deal if the lenders fail to hit these targets.
Mr Osborne said the deal with banks, which followed months of talks led by former Barclays chief executive John Varley, gave the UK the “most transparent pay regime in the world” and would force lenders to make more money available for British businesses than they otherwise would.
Ed Balls, the shadow chancellor, described the so-called 'Project Merlin' negotiations as a “complete shambles” and said the concessions offered by the banks were “pitiful”.
“We have gone from Project Merlin to the Wizard of Oz,” said Mr Balls.
David Frost, director general of the British Chambers of Commerce, said while he welcomed the announcement more needed to be done to improve services for smaller businesses.
“Without clear lending processes and more sensible decision-making at a local level, many businesses will still be reluctant to ask for loans and big net lending targets won’t be met,” said Mr Frost.
The agreement comes a day after the Chancellor saddled big banks with an extra £800m in taxes, when he increased the bank levy and made it permanent. The levy will raise £2.5bn this year.
Mr Osborne said he had increased the levy to get lenders to play their part in reducing Britain's massive deficit and also as a act of "good faith" to help reach a deal with lenders.
The revolution is not an apple that falls when it is ripe. You have to make it fall. - Che Guevara
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