Daniels briefs colleagues as row mounts over his bonus

David Hellier
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LLOYDS Banking Group chief executive Eric Daniels yesterday called senior colleagues together to warn them a storm was about to erupt about the potential size of his bonus.

Daniels told colleagues there was going to be “noise” about his possible bonus payments and he said that somebody “out there” was trying to create mischief.

Reports yesterday suggested that Daniels, who is shortly leaving the bank, will be awarded a bonus of around £2m which will be complemented by a further £2m in shares that will have accrued to him as part of a long-term incentive scheme.

However, Lloyds sources suggested the reports were speculative and that Daniels’ bonus payments were yet to be determined. “There will be a debate on this by the bank’s remuneration committee at the end of the month,” they said.

Daniels waived his bonus last year but he is not expected to want to do the same this time around, causing potential embarrassment for the government.

Deputy Prime Minister Nick Clegg promised this week to do something about bonuses at the banks that were partly owned by the taxpayer.