Lloyds and Royal Bank of Scotland are set to impose a cap on cash bonuses for the sixth consecutive year, in line with previous agreements made with the Government body that holds the taxpayer’s shares in the banks.
The Daily Telegraph reports that the two banks negotiate with UKFI each year before setting their bonuses.
As well as adhering to European rules that cap bonuses at a maximum of 200% of base salary, Lloyds and RBS are expected to limit cash rewards to £2,000 ($3,091)per employee, in line with a long-standing agreement with UKFI.
RBS paid a total of £576m ($890.1m) in bonuses last year, which included deferred shares, compared to £679m ($1.05bn) in 2012. Lloyds’ bonus pool rose 8% to £395m ($610.4m) in 2013, with most paid out in deferred shares.
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