Eric Daniels turns down £2.3 million Lloyds bank bonus
Chief executive Eric Daniels has today announced he will turn down a £2.3 million bonus from Lloyds bank. This is the second year in succession that he has refused to take up his bonus entitlement although he is still on a salary of £1 million a year. So why has Eric Daniels turned down this enormous bonus?
In a trend which is hitting the UK banking sector, Eric Daniels is the fourth prominent figure in the industry to turn down a bonus this year. Under pressure from the UK government, regulators and shareholders, we are seeing more and more banking leaders refusing to take short-term bonuses although sometimes there are awarded long term share bonus plans. At some point this trend will turn and revert to the "old banking sector" where massive bonus payments were commonplace.
While the issue of banking bonuses and banking remuneration has been predominantly focused upon Lloyds bank and Royal Bank of Scotland, two companies which were effectively bailed out by UK taxpayers, it has begun to spread to the likes of Barclays bank. In reality, while the likes of Barclays bank received no direct government investment, the company and many others in the sector did benefit from general UK government assistance offered to the money markets and the financial sector as a whole.
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