BBC Home > BBC News > Business

Lloyds Banking Group boss to waive 2.3m bonus

22 February 10 17:25 GMT

The chief executive of Lloyds Banking Group, Eric Daniels, has decided to waive his £2.3m bonus for 2009.

The bank, which is 43%-owned by the taxpayer, said Mr Daniels had taken the decision to prevent a row over bonuses.

He was said to be concerned that a row would distract attention from the "excellent progress" made by the bank over the last year.

It follows the decision by Stephen Hester, chief executive of Royal Bank of Scotland, to forego his 2009 bonus.

The two top men at Barclays, which has not received any direct government aid, also turned down their bonuses last week.

'Significant contribution'

In a statement, Lloyds said its remuneration committee, which decides bonus awards, had agreed that Mr Daniels deserved his bonus for the year.

"The committee decided that Eric Daniels... merits the full payout under the company's annual bonus scheme because of his significant individual contribution, and the group's overall performance," it said.

"Mr Daniels has informed the board, however, that he wishes to waive his bonus."

It is the second year in a row that Mr Daniels has chosen not to take his annual bonus, expected to be worth £2.3m.

He will still be paid just over £1m in base salary, however.

The bank hinted that it would still pay other staff bonuses this year, saying that it was right that employees received "appropriate financial recognition" for their performance.

Lloyds is expected to announce losses when it reports its full-year results later this week.

Related BBC sites

*