Treasury locked in talks over state bank bonuses
PRIME Minister David Cameron insisted yesterday that bonuses at state-owned banks Lloyds and RBS are not “a done deal”, even as private banks prepare to award bonuses as usual this week.
Reports have circulated recently that RBS chief executive Stephen Hester is in the running for a £2.5m bonus, though nearly all of it is likely to paid in shares rather than cash.
Cameron added that, overall: “I want the bonus pools to be lower… I want the lending that banks do to do business … to increase.”
Cameron’s statement came as RBS chairman Sir Philip Hampton conceded that large numbers of bankers are paid more than they are worth.
“The star quality, as it were, seems to filter down to people who don’t seem so star quality,” he told the BBC.
The Treasury is to unveil a deal involving industry lending targets soon, although the collective agreement was dealt a blow last week when Santander UK withdrew from talks.
Meanwhile, non state-owned banks are to proceed with bonus payments this week after many chief executives waived their awards last year.
The total UK bonus pot for 2010 is estimated at £7bn.
FIRST NINE MONTHS OF 2010, IN BILLIONS OF POUNDS (BASED ON YESTERDAY’S EXCHANGE RATE)
Goldman Sachs
Revenues 19.2
Total Compensation 8.3
Percentage 43%
JP Morgan
Revenues 12.6
Total Compensation 4.9
Percentage 40%
Deutsche Bank
Revenues 13.7
Total Compensation 3.9
Percentage 28%
Morgan Stanley
Revenues 15
Total Compensation 7.6
Percentage 52%
RBS
Revenues 6.3
Total Compensation 2.1
Percentage 33%
Barclays
Revenues 9.3
Total Compensation 4
Percentage 43%
UBS
Revenues 6.4
Total Compensation 3.6
Percentage 56%
Credit Suisse
Revenues 8.3
Total Compensation 4
Percentage 49%