Lloyds TSB staff to receive bonuses
Lloyds TSB staff to receive bonuses
Tuesday 21st October 2008
Staff at Lloyds TSB will continue to receive bonuses despite the bank's part-nationalisation by the government.Chief executive Eric Daniels told employees in a recorded message that the restrictions placed on it by the government would not affect its rewards for hardworking staff.
"If you think about it, the first restriction was not to pay bonuses. Well Lloyds TSB is in fact going to pay bonuses," Mr Daniels said.
"I think our staff have done a terrific job this year. There is no reason why we shouldn't."
The news is likely to anger those who resent taxpayers' money being used to bail out banks whose behaviour has contributed to bringing about the current financial crisis.
The government has acquired shares in the bank in return for £5.5 billion of taxpayers' funds, as part of the government's £37 billion bailout for banks.
Mr Daniels says limitations placed on his bank's behaviour as a result of the arrangement are different from other bailouts with HBOS and Royal Bank of Scotland.
"We do not have any such restrictions," he continued.
"What we have given the government is an assurance that we will make our products available in the SME (small and medium business) markets and mortgages so we will have good availability and we will market just as hard as we did in 2007. I have no issue in agreeing to that."
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