UK banks in talks over bonus cuts, news report reveals

16 November 2010

Representatives from British banks are currently negotiating over a potential reduction to the size of their bonus pool.

According to the BBC, discussion between the banks is focussed on reducing the size of the pot from £7 billion to £4 billion in 2011.

The negotiations, which are reportedly being led by the British Bankers Association (BBA), are thought to be taking place as part of an attempt to reduce public anger and criticism of the banking executives for the size of their bonus packages, especially during a time when the government is making reductions to its public purse.

A senior banker told the news provider that although discussion is taking place, a “workable agreement” for the industry could not be guaranteed.

“We are talking to each other about making some kind of joint statement about bonuses that would demonstrate that we are reducing the amount we are allocating to remuneration this year.”

However, the BBA denied that any discussion was taking place and told the broadcaster that news of any debate was “speculation”.

Richard Lambert, the outgoing director-general of the Confederation of British Industry, recently warned the banks to be sensitive to public feeling when deciding on how much money they would pay staff.

By Jim Ottewill

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