EMERGING markets bank Standard Chartered yesterday distanced itself from talks between the UK’s biggest banks over limiting bonus payouts.
RBS, HSBC and Barclays are reportedly in discussions with each other and the government over potentially cutting 2010 bonuses as well as lending more to businesses.
The UK’s five biggest banks may also contribute up to £1.5bn over two years to the government’s Big Society Bank for social projects from their own funds as well as dormant accounts.
Standard Chartered is not prepared to limit benefits to its 85,000 employees as just three per cent are UK-based, head of media relations, Jon Tracey, said.
“We can confirm we are not part of any pact,” he said. “It would be unfair to the vast majority of our staff to curtail compensation arrangements.”
British Bankers Association chief executive Angela Knight confirmed the banks were talking to the government about pay and other issues.
It is believe that an agreement signed by bank chief executives could be issued before Christmas. While, many of the banks are resisting a cap on individual bonuses, it is likely that weaker overall performances this year will naturally reduce some banks’ bonus pools.