Are the banks finally listening to the government and UK taxpayers?
Over the last few days we have seen the likes of Lloyds bank and Royal Bank of Scotland backtrack on some of their earlier promises to increase salaries and increase bonuses. This is a welcome surprise for the UK government and UK taxpayers amid signs that finally the banks are starting to listen and take appropriate action. So what has brought about this U-turn from the banking community?
The introduction of the Association of British Insurers (ABI), one of the strongest and most influential shareholder groups in the country, it is perhaps the reason why UK banks have taken a different tack over the last few days. The ABI, often working behind the scenes and away from the public eye, has been very vocal in a number of attacks against the Royal Bank of Scotland and Lloyds bank with regards remuneration and bonus packages. The ABI has the ability to bring together shareholders who could ultimately vote against such packages, which historically have been waved through with very little in the way of comment or opposition.
Whether we are entering a new age when the ABI and other shareholder groups will be more active regarding bonuses and remuneration packages remains to be seen, but the recent intervention is appreciated by many.
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