Skip to main content

Banks: Pay

Volume 504: debated on Wednesday 27 January 2010

To ask the Chancellor of the Exchequer whether (a) his Department and (b) UK Financial Investments advised (i) RBS and (ii) Lloyds Banking Group on the categories of employees to be (A) included in and (B) excluded from bonus pools. (313262)

The Government's shareholdings in the Royal Bank of Scotland (RBS) and Lloyds Banking Group are managed on a commercial and arm's length basis by UK Financial Investments Ltd (UKFI). UKFI's objective is to protect and create value for the taxpayer as shareholder, with due regard to the maintenance of financial stability, and to act in a way that promotes competition.

UKFI have agreed deferral and clawback terms for 2009 bonuses for both banks, which have signed up to the FSA code and G20 agreements. No decisions have yet been taken on the quantum of bonus payments.