Downing Street Says

» Monday, February 16, 2009

Bonuses

Asked whether the Prime Minister agreed with David Cameron’s view that there should be a 2,000 cap on bonuses, the PMS replied that our general position on bonuses was that firstly, with respect to Lloyds, despite what was reported at the weekend, we had not received any proposals from Lloyds and that discussions with RBS were at a fairly early stage. So, at this point, we were not going to get into the specifics but the Prime Minister is very clear that we do need to be guided by a number of key principles. First of all, that there should be no rewards for failure. Second, that bonuses should be based on long term, sustainable performance. Third, that bonuses should contain claw-back provisions for future poor performance. Fourth, that the regulator should set out guidelines and take remuneration policy into account when regulating a bank. These are the key principles and we will need to discuss this with the management of the individual banks. In the case of RBS, that is what we are in the process of doing. And in the case of Lloyds, we haven’t actually received any proposals or had any substantive discussions with them yet.

1 Comment »

As a customer of hbos for many years i am unable to comprehend the ridiculous amounts of bonuses given to employees for doing their job, for which they get more than adequate wages anyway. I would seriously consider taking my custom elsewhere if I knew who to trust.
Comment by s.phillips — 16 Feb 2009 on 9:30 pm | Link

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Bonuses

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