Lloyds TSB staff have been told that they will still get their bonuses despite the fact the bank is being bailed out by the Government.
According to reports, chief executive Eric Daniels has told employees that the £5.5billion Government bail-out - which Gordon brown has promised comes on the understanding of a crackdown on bankers' pay - will not affect this year's bonuses.
According to the Guardian, Daniels recorded a message for staff where he said that the bank faces "very, very few restrictions" on its behaviour.
The Guardian quotes Daniels as saying: "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."
BEST SAVINGS ACCOUNTS »
Last week, when the Prime Minister announced the unprecedented bail-out scheme, he said that the banks in question has agreed to the conditions that would "bring an end to rewards for failure" and promised that the directors at the three banks – Lloyds TSB, RBS and HBOS – would not receive bonuses.
Lloyds TSB then confirmed that it would ask its executives to take their bonuses for 2008 and 2009 in shares.
According to reports, the employees he is talking about in his address will not necessarily by high paid workers – they could be branch staff who only earn around £15,000 a year and rely on bonuses to help bolster their wage.
© Fair Investment Company Ltd