The head of Britain’s banking lobby was widely condemned yesterday after claiming the days of bumper bonuses are over.
As City workers looked forward to lavish payouts of £4.2billion this Christmas, Angela Knight, chief executive of the British Bankers’ Association, said: ‘We are no longer in big bonus territory.’
She added the ‘continuing chorus of public concern’ over excessive pay was a mix of ‘well-informed criticism as well as unfocused anger’.
The row came a day after Bank of England governor Sir Mervyn King told banks to cut bonuses and use the cash saved to bolster themselves against the eurozone crisis.
Miss Knight’s comments, in a blog on the BBA website in response to Sir Mervyn, triggered a furious response from politicians and trade unions.
Liberal Democrat Lord Oakeshott, a close ally of Business Secretary Vince Cable, said her remarks were ‘amazingly complacent’ and asked: ‘What planet are bankers living on?’
The issue of fat-cat pay extends beyond banks to the boardrooms of major companies where executives have seen their earnings soar.
Thomson Reuters chief executive Tom Glocer unexpectedly quit the firm yesterday – and will walk away with at least £24million in pay and shares.
It is thought the state-controlled Lloyds Banking Group is trying to ‘claw back’ as much as half of the £1.45million bonus awarded to former boss Eric Daniels.
Just to reiterate £4.2 BILLION in bonuses- not one off payments- but YEARLY bonuses… Now I don’t begrudge people that have worked hard and been successful their money- but the banks haven’t…
That’s the yearly pay for:
So, I thought the gov were going to be tough on them?
Tough on your old school friends?
I don’t think so…