Pressure on Lloyds chief Eric Daniels as RBSs Stephen Hester waives £1.6m bonus

By Kara Gammell Published: 10:09PM GMT twenty-one February 2010

Mr Hester done the move in an try to defuse and depoliticise the ongoing row about bankers" bonuses. He was additionally attempting to change a enlightened preference from UK Financial Investments (UKFI) to pointer off on bonuses to RBS"s investment promissory note staff.

If UKFI, the physique handling the taxpayers" bank stakes, signs off on the offer this week, RBS is formulation to compensate investment bankers about 28pc of revenues in bonuses.

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Mr Hester"s move will supplement to the vigour already on Mr Daniels to follow suit. The RBS chief"s preference creates him the third tip senior manager to exclude monetary reward. Last week John Varley, Barclays arch executive, and Bob Diamond, boss and head of the investment bank, waived their bonuses.

When approached by The Daily Telegraph on either the headlines about Mr Hester forgoing his reward would force Mr Daniels" hand, a Lloyds orator said: "Our eccentric arrangement cabinet has done no preference about any monetary awards at this time."

Controversy over arrangement is set to browbeat the RBS and Lloyds formula this week, with the banks together approaching to make known staff awards of around �1bn.

RBS, that last year posted the greatest annual loss in UK corporate history, is approaching to inform a narrower shortfall of around �5.3bn when it announces the formula on Thursday.

Lloyds, that is 41pc taxpayer owned, is approaching to post pre-tax waste of at slightest �4bn on Friday as it continues to humour the ill-effects of the rescue of HBOS.

However, whilst both RBS and Lloyds are set to divulge outrageous bad debts, that will have pushed them in to such low losses, both are approaching to contend that the signs are improving.

RBS, that is 84pc taxpayer owned, will point to �8bn of distinction in the core commercial operation as explanation of a viable business. Mr Hester is in the surrounded by of a five-year turnaround plan to revive RBS to health after receiving on the pursuit at the tallness of the monetary crisis. His own arrangement payments are formed on his efforts to restructure the bank as well as the profitability.