Lloyds chief 'set for £2m bonus'


Outgoing Lloyds chief executive Eric Daniels will reportedly receive a bonus of around two million pounds

The outgoing chief executive of taxpayer-backed Lloyds Banking Group is poised to receive a bonus of around £2 million, it has been reported.

Eric Daniels is set to be awarded the windfall by the Lloyds board in this year’s controversial bank bonus round, according to the BBC.

The bank boss, who leaves Lloyds in March, is entitled to a £2.3 million maximum bonus, set at 225% of salary.

He has waived his bonuses for two years in a row, but any payout is likely to fuel mounting anger over bank handouts as reports suggest the industry is preparing to fork out a bumper £7 billion in bonuses.

The BBC said sources close to Lloyds, which is 41% owned by the taxpayer, believe Mr Daniels will not turn down this year’s bonus after returning the bank to profit in 2010. Lloyds declined to comment.

However, the Government is under pressure to enforce restraint on lavish banker bonuses this year – particularly within state-owned Lloyds and Royal Bank of Scotland.

Barclays boss Bob Diamond fanned the flames over bonuses on Tuesday when he told MPs on the Treasury Select Committee that the time for “apologies and remorse” was over and refused to be drawn on his bonus or payouts to staff.

The Prime Minister is facing claims that the Government has surrendered to the City after failing in its efforts to see banks commit to smaller bonuses and pledge higher levels of business lending.

It has been locked in talks with the industry to reach agreement on “acceptable” bonus levels since before Christmas. But there are concerns that the industry is planning a return to mammoth bonuses after two years of limited handouts and last year’s bonus tax.

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