The business and careers newspaper for students

Round up: The big boys and their bonuses

We look at the bank balances of investment banking's big boys

Round up the big boys & their bonuses

What are the chief executives of Britain’s biggest banks getting this bonus season?

The frenzy over bankers’ bonuses has really ruffled the feathers of the general public over the past fortnight Last year, the Government promised to tackle the hefty bonuses awarded to bankers, given the nation’s economic woes. However, over £7 billion is to be divvied out to bankers this year – much of which will come from banks which are in part owned by the state.

Here’s a run down of how the bank balances of their chief executives are looking...

Bob Diamond

CEO: Barclays

Approximated annual salary: £1.35 million

Bob takes the stance that Barclays pay its bankers for performance, not failure – and that the bank will not pay its bankers any more than he considers necessary. However, he also warns that if Barclays were to drastically cut bonuses, many of its top people would go elsewhere – and that wouldn’t benefit anyone. Bob has nobly waived his bonus for the past couple of years, but we’ve yet to find out whether he’ll accept this year’s sizeable wad.

Stephen Hester

CEO: RBS

Approximated annual salary: £1.2 million

Stephen Hester has arguably had the toughest job in banking this year, inheriting a crumbling RBS on the brink of collapse from his predecessor Fred Goodwin. And now, in the wake of RBS being fined £2.8 million by the FSA for giving terrible service to customers, pressure is mounting for Stephen to forgo his bonus for the past 12 months. The amount on the table is rumoured to be as much as £3 million. But blue-chip investors in RBS are concerned that if he is pressured to give up his bonus, Hester could quit. They are said to be urging the board to pay him a substantial sum.

Eric Daniels

CEO: Lloyds

Approximated annual salary: £1 million

Eric’s set to cash in a substantial £2.3 million this year – that’s the equivalent of 225 per cent of his salary. Not bad at all. But when you consider that the government owns 41 per cent of Lloyds after bailing it out in 2008, it’s easy to see why the tax payer might go red in the face over it. He’s turned down his bonus for two years now, but is rumoured to be pocketing this one before his scheduled departure from the bank in March.

  

Published

Issue 36

p11

02 February 2011

More articles in Investment banking  
Commercial awareness