BONUSES
Lloyds TSB staff to receive bonuses after bank bail-out
The chief executive of Lloyds TSB, one of the banks participating in the multi-billion pound bail-out by the government, has reassured employees that they will continue to receive staff bonuses, according to a report in the Guardian newspaper.
In a recorded message to employees, Eric Daniels said that the bank faced "very, very few restrictions" in its behaviour despite the injection of taxpayers' funds. "If you think about it, the first restriction was not to pay bonuses. Well Lloyds TSB is in fact going to pay bonuses. I think our staff have done a terrific job this year. There is no reason why we shouldn't," said Daniels.
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But Lloyds will ask its executives to take their bonuses for this year and 2009 in shares instead. When the “part nationalisation” of Britain’s largest banks was announced on 8 October 2008, Prime Minister Gordon Brown said banks seeking help had agreed conditions which would "bring an end to rewards for failure" and pledged that directors at RBS and soon-to-be-merged Lloyds TSB and HBOS would not receive cash bonuses this year.
To read the Guardian newspaper report (Tuesday 21 October 2008) click here.
Meanwhile, a spokeswoman for Lloyds TSB told Personnel Today magazine that it was right to reward staff who had done their job well. "We have a bonus framework in place, and have seen no reason why staff shouldn't receive bonuses," she said. "If a member of staff hasn't performed to the level expected of them, they will not benefit."
"We have asked executive directors to take part or all of their bonus in shares, but all employees below that level can receive their full bonus."
To read the Personnel Today report online click here.