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Lloyds Bank, United Kingdom - Source: Reuters
Britain's largest retail bank, Lloyds Banking Group, says its chief executive Eric Daniels has decided to forgo an annual bonus of more than 2 million pounds ($NZ4.4 million).
Daniels, who will still receive his salary of about 1 million pounds, follows in the footsteps of his counterpart Stephen Hester at part-nationalised Royal Bank of Scotland, who has also chosen to waive his payout.
Lloyds, 41% state-owned, says it is mindful of public anger over banker pay but it is appropriate to reward staff where targets were met.
The bank, which as a retail lender pays only a fraction of revenues in bonuses, says its Remuneration Committee has decided Daniels deserved the full payout "because of his significant individual contribution" and the group's performance.
"Daniels has informed the board, however, that he wishes to waive his bonus, the second consecutive year that he has done so," Lloyds chairman Win Bischoff says in a statement.
"Daniels has taken this action because he believes that the excellent progress the group is making, based on the considerable contribution of many colleagues across the company, is in danger of being obscured by the current debate on executive bonus awards in the banking sector."
The bonus pool at Lloyds is expected to total about 200 million pounds ($NZ441 million).
