Lloyds Banking Group is poised to follow suit and unveil a new pay policy that could catapult its CEO Charlie Nunn to a maximum annual payout of over £13 million, under the UK's lifted banker bonus cap.
As part of the bank's remuneration committee drafting a new three-year executive pay policy, Nunn will likely be in line for a significant hike if his proposed pay packet is approved by shareholders this spring. The prospect sum, which could reach up to £13.2 million, would represent an increase from the current maximum offer of £9.1m.
The move comes as the UK government's decision to scrap the banker bonus cap has sparked controversy over the fairness and potential risks associated with the looser pay rules. Critics argue that banks are inflating salaries to compensate for lost earnings potential, while regulators claim that higher pay is essential to attract top talent from abroad, particularly in the US financial sector.
The scrapped bonus cap was introduced in 2014 as part of efforts to prevent reckless behavior among bankers during the 2008 financial crisis. However, with regulators now allowing banks to award bonuses based on individual performance, some critics are warning that this could lead to a lack of accountability and potentially destabilizing effects on the financial system.
Barclays CEO CS Venkatakrishnan and HSBC chief Georges Elhedery have already benefited from the increased pay flexibility, with their potential payouts soaring to nearly £14.3m and £15 million respectively. NatWest Group chief Paul Thwaite has also received a significant increase in his maximum pay package, up to £7.7m for a single year.
Lloyds Banking Group will present its new pay policy proposals to shareholders later this year, with the bank's spokesperson stating that the approach aims to align performance and reward while offering competitive remuneration. The move is set to be closely watched as other major banks unveil their annual reports in the coming weeks, providing insight into how the scrapped bonus cap has impacted their chief executives' pay packets.
As part of the bank's remuneration committee drafting a new three-year executive pay policy, Nunn will likely be in line for a significant hike if his proposed pay packet is approved by shareholders this spring. The prospect sum, which could reach up to £13.2 million, would represent an increase from the current maximum offer of £9.1m.
The move comes as the UK government's decision to scrap the banker bonus cap has sparked controversy over the fairness and potential risks associated with the looser pay rules. Critics argue that banks are inflating salaries to compensate for lost earnings potential, while regulators claim that higher pay is essential to attract top talent from abroad, particularly in the US financial sector.
The scrapped bonus cap was introduced in 2014 as part of efforts to prevent reckless behavior among bankers during the 2008 financial crisis. However, with regulators now allowing banks to award bonuses based on individual performance, some critics are warning that this could lead to a lack of accountability and potentially destabilizing effects on the financial system.
Barclays CEO CS Venkatakrishnan and HSBC chief Georges Elhedery have already benefited from the increased pay flexibility, with their potential payouts soaring to nearly £14.3m and £15 million respectively. NatWest Group chief Paul Thwaite has also received a significant increase in his maximum pay package, up to £7.7m for a single year.
Lloyds Banking Group will present its new pay policy proposals to shareholders later this year, with the bank's spokesperson stating that the approach aims to align performance and reward while offering competitive remuneration. The move is set to be closely watched as other major banks unveil their annual reports in the coming weeks, providing insight into how the scrapped bonus cap has impacted their chief executives' pay packets.
. All these bankers getting paid millions and I'm not sure what's more worrying - that they'll be incentivized to take risks again or that we're just accepting this as the new normal 
. Its like, whats fair about paying someone nearly £13 million for doing their job? And what does that say about our economy and the value of money itself? I mean, I get that top performers deserve some sort of reward, but this seems extreme...
. I mean, yeah, he's done his job and all, but 13 million quid? That's like, a fortune! 
The thing is, I feel bad for the guy, but at the same time, it seems like some folks just love to give out big fat bonuses to high-ranking execs. 
And what about all those poor employees who are struggling to make ends meet? It's just not fair, you know? 
Don't get me wrong, I understand the bank's goal of attracting top talent and whatnot, but can't they find ways to incentivize employees without breaking the bank? 
#NotMyCEO #FairnessMatters #ExecutivePay
That's like, insane! I mean, I get that the bankers want to be competitive and attract top talent, but £13.2 million? 
. It's all about the bonuses now and who gets the most money 
. What's next? Are they gonna start paying them in gold bars or something? 
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. IT FEELS LIKE THE SYSTEM IS BROKEN WHERE THESE CEOS GET AHEAD ON EVERYONE ELSE 
. If CEOs can just cash out because of individual performance, that's just a recipe for disaster. I'm all for competitive pay, but let's make sure it doesn't come at the expense of our financial stability 
.
... like, £13 million? That's nuts! It feels like they're incentivized to take huge risks for their own gain instead of thinking about how it'll affect everyone else 
It's just so... excessive. Can't we just focus on paying people fairly for their work instead of trying to one-up each other with ridiculously high payouts? 
I mean, can't we just have a more balanced approach to paying out bonuses so everyone's on the same level playing field? It feels like the bank is trying to justify these huge payouts by saying they're necessary for competitiveness, but what about the rest of us who are struggling to make ends meet? 
Not saying I'm opposed to the idea of banker bonuses entirely, but come on, can't we find a sweet spot here? Maybe something like "if you don't screw up, you get x amount of bonus"? Just a thought...
i was thinking about that other day when i was scrolling thru food pics on instagram and i saw that sauce 
i wonder if they use the same recipe or something...anyway, gotta say tho lloyds banking group seems to be getting a sweet deal with this new pay policy