NOT ALL BANK BONUSES ARE BAD

Stafford’s Labour MP David Kidney says a dozen constituents who work for Lloyds TSB Bank, now called Lloyds Banking Group, have written to him about bank bonuses. He says their comments throw a different light on the public debate about bankers’ bonuses:

“I and many of my constituents have condemned the excessive pay packages of senior bankers. It’s not only the breath-taking sizes of their pay, bonuses, share options and pensions. It is also the fact that these rewards have been bestowed despite spectacular failures of performance.

“But the bank tellers who have now contacted me are not high earners. Their average pay is £17,000 a year. For them, a bonus is not discretionary but it is linked directly to performance during 2008. These employees argue to me that the bonus is really a portion of their pay that has, in effect, been withheld to be paid only after the year’s performance has been assessed.

“I’m told that the amount of money to be spent on their performance-related bonuses this year is 2.5% and that most staff will earn a bonus of 2%. Those who have not had a good year expect to receive nothing.

“This seems to me a far cry from the top bankers’ massive and multiple benefits. The Lloyds’ system for the staff who work in bank branches is not excessive. It does not reward failure.

“Lloyds TSB has announced a profit for its last year. Now it has taken on HBOS which in stark contrast has made mega losses. I don’t think the front-line Lloyds tellers should be penalised for events beyond their control. I believe the Government should not interfere with bonus payments that bank tellers have earned over the last year. My constituents have asked me to write to the Treasury to say this and I will do so.”

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04 March 2009