Lloyds chief 'set for £2m bonus'

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

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 yesterday 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.

There are suggestions that banks feel efforts to rein in pay since the crisis have not been recognised by the public and politicians.

Lloyds clawed its way back into profit in 2010 with a £1.6 billion surplus at the half-year stage, having suffered billions of losses amid the financial crisis.

Mr Daniels presided over its ill-fated deal to buy Halifax Bank of Scotland at the height of the meltdown.

Last year, he decided to forgo a £2.3 million bonus after the board said he was entitled to the maximum handout, despite the bank reporting losses in 2009 of £6.3 billion.

He is to be replaced at the helm by former Santander UK boss Antonio Horta-Osorio.

A Cabinet minister expressed concern about Mr Daniels' reported bonus payment.

Transport Secretary Philip Hammond told BBC Radio 4's The World at One: "It is not welcome news. We have made it very clear that we expect the taxpayer-controlled banks to show restraint."

Downing Street said UK Financial Investments (UKFI), which manages the Government's shareholdings in the banks, had not received any proposals about bonuses from either Lloyds or RBS.

"UKFI have not received any proposals from Lloyds, so it sounds like speculation to me," the Prime Minister's spokesman said.

Asked whether a £2 million bonus would be acceptable, he added: "It's a hypothetical question, but let's wait and see.

"There is a process. UKFI speaks to Lloyds, UKFI speaks to RBS, but as I understand it from the Treasury, as of earlier today they had not received any proposals."

Start your day with The Independent, sign up for daily news emails
Life and Style
Steve Shaw shows Kate how to get wet behind the ears and how to align her neck
healthSteven Shaw - the 'Buddha of Breaststroke' - applies Alexander Technique to the watery sport
footballShirt then goes on sale on Gumtree
Terry Sue-Patt as Benny in the BBC children’s soap ‘Grange Hill’
voicesGrace Dent on Grange Hill and Terry Sue-Patt
Arts and Entertainment
Performers drink tea at the Glastonbury festival in 2010
A poster by Durham Constabulary
Cameron Jerome
footballCanaries beat Boro to gain promotion to the Premier League
Arts and Entertainment
Emily McDowell Card that reads:
artCancer survivor Emily McDowell kicks back at the clichés
Arts and Entertainment
Twin Peaks stars Joan Chen, Michael Ontkean, Kyle Maclachlan and Piper Laurie
tvBadalamenti on board for third series
Life and Style
Standing room only: the terraces at Villa Park in 1935
Ben Stokes celebrates with his team mates after bowling Brendon McCullum
sportEngland vs New Zealand report
Amal Clooney has joined the legal team defending 'The Hooden Men'
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Guru Careers: Software Developer / C# Developer

£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...

Neil Pavier: Management Accountant

£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...

Sheridan Maine: Commercial Accountant

£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...

Laura Norton: Project Accountant

£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...

Day In a Page

Abuse - and the hell that came afterwards

Abuse - and the hell that follows

James Rhodes on the extraordinary legal battle to publish his memoir
Why we need a 'tranquility map' of England, according to campaigners

It's oh so quiet!

The case for a 'tranquility map' of England
'Timeless fashion': It may be a paradox, but the industry loves it

'Timeless fashion'

It may be a paradox, but the industry loves it
If the West needs a bridge to the 'moderates' inside Isis, maybe we could have done with Osama bin Laden staying alive after all

Could have done with Osama bin Laden staying alive?

Robert Fisk on the Fountainheads of World Evil in 2011 - and 2015
New exhibition celebrates the evolution of swimwear

Evolution of swimwear

From bathing dresses in the twenties to modern bikinis
Sun, sex and an anthropological study: One British academic's summer of hell in Magaluf

Sun, sex and an anthropological study

One academic’s summer of hell in Magaluf
From Shakespeare to Rising Damp... to Vicious

Frances de la Tour's 50-year triumph

'Rising Damp' brought De la Tour such recognition that she could be forgiven if she'd never been able to move on. But at 70, she continues to flourish - and to beguile
'That Whitsun, I was late getting away...'

Ian McMillan on the Whitsun Weddings

This weekend is Whitsun, and while the festival may no longer resonate, Larkin's best-loved poem, lives on - along with the train journey at the heart of it
Kathryn Williams explores the works and influences of Sylvia Plath in a new light

Songs from the bell jar

Kathryn Williams explores the works and influences of Sylvia Plath
How one man's day in high heels showed him that Cannes must change its 'no flats' policy

One man's day in high heels

...showed him that Cannes must change its 'flats' policy
Is a quiet crusade to reform executive pay bearing fruit?

Is a quiet crusade to reform executive pay bearing fruit?

Dominic Rossi of Fidelity says his pressure on business to control rewards is working. But why aren’t other fund managers helping?
The King David Hotel gives precious work to Palestinians - unless peace talks are on

King David Hotel: Palestinians not included

The King David is special to Jerusalem. Nick Kochan checked in and discovered it has some special arrangements, too
More people moving from Australia to New Zealand than in the other direction for first time in 24 years

End of the Aussie brain drain

More people moving from Australia to New Zealand than in the other direction for first time in 24 years
Meditation is touted as a cure for mental instability but can it actually be bad for you?

Can meditation be bad for you?

Researching a mass murder, Dr Miguel Farias discovered that, far from bringing inner peace, meditation can leave devotees in pieces
Eurovision 2015: Australians will be cheering on their first-ever entrant this Saturday

Australia's first-ever Eurovision entrant

Australia, a nation of kitsch-worshippers, has always loved the Eurovision Song Contest. Maggie Alderson says it'll fit in fine