UK government forces change in Lloyds bank directorship
The UK government has today forced the resignation of the Lloyds bank pay committee chief Wolfgang Berndt whom it blames for the authorisation of a £2.3 million bonus for bank boss Eric Daniels. While there was no vote on the issue, and the director in question officially retired for personal reasons, it is known that the UK authorities had let it be known they were going to block his reappointment which effectively brought an end to his time at the bank.
It is unclear as to why the UK government did not use its 41% shareholding in Lloyds bank to block or at least reduce the £2.3 million bonus, which along with other bonuses payments has attracted the wrath of many shareholders. Maybe the UK government is concerned about being seen to have a major influence on the running of Lloyds bank even though in effect it has forced a director to resign after many years with the group.
While on the surface the reason for the resignation was given as personal there is no doubt there is still much friction between the UK government, Lloyds bank and Royal Bank of Scotland with regards to how the two banks should be run. Initial promises that the operations would be allowed to continue on a commercial basis, i.e. awarding bonuses and remuneration packages in line with competitors, appear to be stretched at the moment amid concerns from UK taxpayers.
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