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Lloyds boss will not take bonus Banks to reassess pay structure
(about 2 hours later)
Lloyds Bank chief executive Eric Daniels will tell the Treasury Committee that he will not take his 2008 bonus, the BBC has learned. Senior banking executives have told a committee of MPs they are reassessing their pay structures.
John Varley, chief executive of Barclays, said some aspects of compensation had not served "either the industry or the society well".
Other banks, whose bosses are being grilled, include Abbey, Royal Bank of Scotland, HSBC and Lloyds.
A Treasury Committee is conducting a two-day hearing into the banking crisis, including the issue of bonuses.
The five men appearing before the committee include Eric Daniels, the current head of Lloyds, RBS chief executive Stephen Hester, Abbey chief executive Antonio Horta-Osorio and HSBC's UK managing director Paul Thurston.
PAUL THURSTON UK managing director, HSBC, 55Salary: Not disclosedJoined HSBC in 1975
There has been public anger over bonuses being paid to bankers, at a time when other parts of the economy are being hit hard as the number of job losses increases.
On Tuesday, former bosses of RBS and HBOS apologised for their banks' failure.
See how much some bank bosses earned in 2007
Bonus row
Before the meeting started former deputy prime minister John Prescott presented a petition, with some 23,000 signatures, to the Treasury Committee, demanding RBS pay no bonuses to its bankers and traders.
ERIC DANIELS Chief executive, Lloyds Banking Group, 57Salary: £2,884,000, including bonus and benefits (2007)Entered banking in 1975 with Citibank, where he spent 25 years Read Robert Peston's blog
The committee head John McFall, who said he had been sent numerous e-mails and letters on the issue of pay, asked the bosses: "As institutions, why do you think you are hated so much by the public?"
Mr Varley replied : "I entirely understand why this is a matter of concern and interest and in some cases anger, because if you look at the failure in the banking system over the last two years, it is clear that the banks have contributed to that failure and it is clear that part of that problem has been the issue of compensation".
Lloyds Bank chief executive Eric Daniels is expected to tell the Treasury Committee that he will not take his 2008 bonus, the BBC has learnt.
The BBC's business editor Robert Peston says Mr Daniels could have been entitled to a bonus in excess of £2m.The BBC's business editor Robert Peston says Mr Daniels could have been entitled to a bonus in excess of £2m.
Executive pay has come under fire after reports Royal Bank of Scotland was considering paying bonuses, despite being bailed out by the taxpayer.Executive pay has come under fire after reports Royal Bank of Scotland was considering paying bonuses, despite being bailed out by the taxpayer.
STEPHEN HESTER Chief executive, Royal Bank of Scotland, 47Salary: £1.2m, no bonus (2008)Joined RBS in October 2008 from British Land
Lloyds has said it is still planning to pay bonuses to executive directors.Lloyds has said it is still planning to pay bonuses to executive directors.
The group claimed it had performed better than its peers.
Personal decision FROM THE TODAY PROGRAMME More from Today programmeFormer banking bosses say 'sorry'
Mr Daniels was paid almost £2.9m in 2007, including bonus and benefits.Mr Daniels was paid almost £2.9m in 2007, including bonus and benefits.
Hi decision to waive his bonus is a personal one and does not represent policy by the Lloyds Banking Group board, according to our business editor. His decision to waive his bonus is a personal one and does not represent policy by the Lloyds Banking Group board, according to our business editor.
No decisions have been taken regarding the bonus entitlements for the five other executive directors.No decisions have been taken regarding the bonus entitlements for the five other executive directors.
Mr Daniels and other bank bosses are set to be questioned later in the second day of an inquiry into the banks' role in the financial crisis. Bonuses to 'tumble'
See how much bank bosses earned in 2007
He will appear before the committee, together with Barclays chief executive John Varley, RBS chief executive Stephen Hester, Abbey chief executive Antonio Horta-Osorio and HSBC's UK managing director Paul Thurston.
Bonuses to 'tumble' JOHN VARLEY Chief executive, Barclays, 52Salary: £2.4m, including bonus and benefits (2007)Has been with the bank since 1982 Bank bonuses to 'tumble in 2009'
A report by the Centre for Economics and Business Research (CEBR) says bankers' bonuses in the UK are likely to be down 70% from their peak in 2007.A report by the Centre for Economics and Business Research (CEBR) says bankers' bonuses in the UK are likely to be down 70% from their peak in 2007.
The CEBR forecasts that even in 2012, bonuses will be only back to 48% of their 2007 peak levels.The CEBR forecasts that even in 2012, bonuses will be only back to 48% of their 2007 peak levels.
The CEBR said increased competition and tougher regulatory control could help tackle the problem of excessive fees and pay. ANTONIO HORTA OSORIO Chief executive, Abbey Bank, 44Salary: Not disclosedJoined Abbey in 2004 and was appointed chief exec in 2006
'Sorry' And it said increased competition and tougher regulatory control could help tackle the problem of excessive fees and pay.
On Tuesday, ex-bosses of RBS and HBOS apologised for their banks' failure. As well as presenting a petition, Mr Prescott has written an open letter to RBS chief executive Stephen Hester, calling for him to stop the bonus payout.
STEPHEN HESTER Chief executive, Royal Bank of Scotland, 47Salary: £1.2m, no bonus (2008)Joined RBS in October 2008 from British Land The former bank chiefs also said the bonus culture had contributed to the crisis and needed to be reviewed.
Former Royal Bank of Scotland chief executive Sir Fred Goodwin told MPs on the Treasury Committee he "could not be more sorry" for what had happened.
But on the issue on remuneration, Sir Fred said if bankers felt they were not paid enough, they would leave.
Protest
Former deputy prime minister John Prescott will also present a petition, signed by 13,000 people, to the Treasury Committee, demanding RBS pay no bonuses to its bankers and traders.
Mr Prescott has also written an open letter to RBS chief executive Stephen Hester, calling for him to stop the bonus payout.
In the letter, he calls the decision even to consider paying £1bn in bonuses after the bank posted a loss of £28bn "both morally and economically outrageous".In the letter, he calls the decision even to consider paying £1bn in bonuses after the bank posted a loss of £28bn "both morally and economically outrageous".
The Prime Minister has already signalled his anger at proposed bank bonuses.The Prime Minister has already signalled his anger at proposed bank bonuses.
Gordon Brown said on Monday that executives should "consider whether they actually receive" bonuses, even if they we legally entitled to them.Gordon Brown said on Monday that executives should "consider whether they actually receive" bonuses, even if they we legally entitled to them.
'Sorry'
Speaking on Tuesday the former bank chiefs also said the bonus culture had contributed to the crisis and needed to be reviewed.
Former Royal Bank of Scotland chief executive Sir Fred Goodwin told MPs on the Treasury Committee he "could not be more sorry" for what had happened.
But on the issue of remuneration, Sir Fred said if bankers felt they were not paid enough, they would leave.

Bosses' pay at UK banks receiving government support

Bosses' pay at UK banks receiving government support

  Position Total pay (including bonuses) 2007 RBS     Sir Tom McKillop Chairman £750,000 Sir Fred Goodwin Group chief executive £4,190,000 Johnny Cameron Chairman, global markets £3,256,000       HBOS     Lord Stevenson Chairman £821,000 Andy Hornby Chief executive £1,926,000 Peter Cummings Chief executive, corporate division £2,606,000       Lloyds TSB     Sir Victor Blank Chairman £661,000 J Eric Daniels Group chief executive £2,884,000 Terri Dial Group executive director £1,995,000       Bradford & Bingley     Rod Kent Chairman £265,000 Steven Crawshaw Group chief executive £1,112,548 Chris Wilford Group finance director £700,572       Northern Rock     Matt Ridley Chairman £223,000 Adam Applegarth Chief executive £785,000 David Baker Deputy chief executive £476,000  Position Total pay (including bonuses) 2007 RBS     Sir Tom McKillop Chairman £750,000 Sir Fred Goodwin Group chief executive £4,190,000 Johnny Cameron Chairman, global markets £3,256,000       HBOS     Lord Stevenson Chairman £821,000 Andy Hornby Chief executive £1,926,000 Peter Cummings Chief executive, corporate division £2,606,000       Lloyds TSB     Sir Victor Blank Chairman £661,000 J Eric Daniels Group chief executive £2,884,000 Terri Dial Group executive director £1,995,000       Bradford & Bingley     Rod Kent Chairman £265,000 Steven Crawshaw Group chief executive £1,112,548 Chris Wilford Group finance director £700,572       Northern Rock     Matt Ridley Chairman £223,000 Adam Applegarth Chief executive £785,000 David Baker Deputy chief executive £476,000
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