Banking News Lloyds Staff To Get £80million Bonus 3045

Lloyds staff to get £80million bonus

09 March 2009 / by Rebecca Sargent
Staff at Lloyds Banking Group could receive a combined cash bonus of £80million it has emerged today.

The news comes despite this weekend’s agreement which will see the taxpayer stake in Lloyds Banking Group increase from 43 per cent to 65 per cent, with the potential to reach 77 per cent.

The cash bonuses of £80million will be paid to staff earning an average salary of £17,000, the BBC has reported.

The news is expected to spark outrage following the bank’s bailout, which is costing the taxpayer billions.

Lloyds chief executives have already announced that they will not be taking a bonus for 2008, and the majority of bonuses will be paid to staff who work in branches at the group.

According to the BBC, the average payout will be around £1,000, and have been approved by UK Financial Investments, the company set up to manage the Government’s shares in both Lloyds and RBS.

The bonuses are also expected to receive criticism from rival political parties, particularly following the uproar over RBS bonuses. However, trade unions are in full support of the bonus agreement, Rob MacGregor, Unite national officer said:

“Unite will stand firm in defence of staff at the Lloyds Banking Group who have earned their small annual bonus payment. These workers are earning salaries as low as £12,000 per year and depend on the bonus payments to survive.

“It is inappropriate for front-line staff to be compared to executives or city traders who have ridden the wave of finance growth and made huge pots of money.”

© Fair Investment Company Ltd

Written by Editorial Team