Clegg Warns RBS And Lloyds Over Bonuses

Clegg

First Posted: 19/12/11 06:13 GMT Updated: 19/12/11 06:13 GMT   PA

Nick Clegg will renew warnings to state-owned banks not to consider awarding "irresponsible" annual bonuses this year or face intervention by the Government.

His promise of "no let up" on the issue will form part of a speech designed to set out a distinct Liberal Democrat "open society" vision amid testing times for the coalition.

While he will claim some common ground with the Tories, the Deputy Prime Minister will sustain his weekend assault on his power-sharing partner's proposed tax break for marriages.

And he will let rip at eurosceptics for putting "narrow national interest" above "enlightened internationalism" - pledging the UK will "re-engage" with EU partners on a range of issues.

UK politics and economics is "distorted by unaccountable hoards of power, wealth and influence", he will say - in the media, lobbying, the City and boardrooms.

Turning on the banks, he will add: "I understand the anger that people feel at the bonuses still flowing to bankers, especially those who have been bailed out by the taxpayer. If we are serious about tackling wealth inequality, serious about responsible capitalism, serious about ensuring everyone contributes fairly to the Government's coffers, then we cannot be neutral on this issue.

"We took a tough line on bank bonuses last year, particularly in the banks where the Government is the biggest shareholder. We ensured that the bonus pools in RBS and Lloyds shrank, that all bonuses paid to chief executives and executive directors were entirely in deferred shares, not in cash and that a limit of £2,000 was placed on cash bonuses.

"The profound impact of the banking implosion on our economy, and on our society, has since become even clearer. There has been no lessening of public anger towards the banks - and there will be no let-up in the Government's determination to keep the clamps on bonus payments.

"So, on the eve of bonus season, let no-one be in no doubt about our determination to use our clout as the major shareholder in these banks to block any irresponsible payments, or any rewards for failure."

Mr Clegg said the Tories' proposed tax break for marriage was not only philosophically objectionable but also unlikely to influence people's decision anyway.

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Nick Clegg will renew warnings to state-owned banks not to consider awarding "irresponsible" annual bonuses this year or face intervention by the Government. His promise of "no let up" on the issue...
Nick Clegg will renew warnings to state-owned banks not to consider awarding "irresponsible" annual bonuses this year or face intervention by the Government. His promise of "no let up" on the issue...
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10:12 AM on 01/13/2012
The banks dont have to worry about this person as he is discredited anyway [uni fees ]
He does not carry any weight ,his govenor is the system he married into system ,the bankers have dinner with Cameron ,they dont have anything to do with lightweights !
03:52 PM on 12/20/2011
"If we are serious about tackling wealth inequality, serious about responsible capitalism, serious about ensuring everyone contributes fairly to the Government's coffers......"
Yes, if we are serious then maybe we should MAKE the lazy get out of bed & earn a living instead of laying there moaning about what other people have got.
And try a proper day's work yourself Cleggy!
04:17 PM on 12/19/2011
Nick clegg needs to get out more. Banks/Hedge funds/Bond sellers/financial traders/commodity traders are there to make profits. They are incentivised along with thousands of other sales operations in the UK. Sell more,make more profit for your employer and you get more money.
The scale may appear huge, the morality may appear questionable but the particular industry is able to pay such rewards.Others pay less because they earn less selling their goods, but they pay bonuses as well. Perhaps he should try selling something real for a change, try double glazing, Betterware and see how the real world operates.
03:35 PM on 12/19/2011
Of course, no bonuses should be allowed if the bank is currently all in the red. Even when they are in the black they should only be allowed to give bonuses where half the amount is distributed to all non-management employees. These people don't make it to the top on their own. They get there on the shoulders of giants.
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Daviejohn
All the world's a stage,
02:28 PM on 12/19/2011
Otherwise, he is going to be very,very cross.
01:22 PM on 12/19/2011
Some of these banks are majority owned by the tax payer, and are making a loss.
If they want to pay bonuses then they can, but firstly they must repay all monies to the tax payer first, and then they must be making a profit. As the idea of a bonus is to reward good work, not bad work.
07:35 AM on 12/20/2011
Quite agree! Also be a good idea not to sell taxpayer's assets off at a rock-bottom price to the tories' rich friends.
12:10 PM on 12/20/2011
I would even go further.
I would force a compulsary purchase of all previously owned tax payer assets.
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12:18 PM on 12/20/2011
Yep... when do we get our shareholders' dividends???
12:39 PM on 12/19/2011
Please inform Mr Clegg that the British people want him to change the record on Banking from a 'warning' to a sending off ie precise, defined, action that will be taken should bonuses top more than (say) 10% of annual salary, and only then if backed up by audit-trailed performance results. That action will be a tax rate of (say) 90%, and a retrospective legal charge on any bonuses paid where performance was not achieved as projected.
Secondly, please inform him that his judgement and rhetoric and planned actions on Europe are not in tune with the vast majority of the Bristish people. What authority or mandate does he have to perpetuate the EU via yet more British tax payers' money?
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12:20 PM on 12/20/2011
That would be the mandate Cammo and himself cobbled together when neither of them managed to actually win the last election.
09:51 AM on 12/21/2011
Undoubtedly. Sadly, democracy is being damaged by the politicians of today, but are they, perhaps a product of our society in general?
12:34 PM on 12/19/2011
Totally disingenuous. I'll bet he's first in line for a banking job when he loses his seat at the next election and neither the Libdems (the remains of) nor the Tories will want anything to do with him
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jimbraid1
12:32 PM on 12/19/2011
The banks must be quaking in their collective shoes at this announcement by Cleggy, NOT. He has obviously not yet realised that his views and comments are totally irrelevent.
01:50 PM on 12/19/2011
I heard he has applied for a job selling Ice Cream for Mr. Softy.
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jimbraid1
02:41 PM on 12/19/2011
lol, I doubt he could even do that.
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12:20 PM on 12/20/2011
He IS Mr. Softy ;-)
12:30 PM on 12/19/2011
The 2000 will be for those at the lower end of the scale, impose it across the board, top execs too, if you want to be really fair and "all in it together", then again 2 grand would be considered well over the top to the average teller or call centre advisor raking in the princely sum of 16 grand so just stop the lot, thats fair for the mess they've caused.
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Mickey Mouse 1
There are no lies or deceit on a chess board.
11:50 AM on 12/19/2011
As the majority shareholder, on behalf of the taxpayer, the government should instruct the banks not to pay bonuses.
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carneliancrystal
Do I believe all the propaganda of course I do
11:38 AM on 12/19/2011
This man is just a liability to Britain he is a loose cannon how can anyone take him seriously, he is like the man who fancied himself but couldn't get round to it
11:28 AM on 12/19/2011
I work at the bottom end of the bank pay scale and the bonuses we recieve no way match anything near what the press claim we receive. I cannot speak on behalf of the top execs but i wish everything they report were true
01:34 PM on 12/19/2011
It isnt the ammount people are getting that is annoying the nation, its the fact banks that are loosing money are still paying them, when the rest of us dont even get a pay rise, never mind a bonus.
No-body would care about the bonuses if the banks paid back the monies owed to the tax payer. So until that happens the bank bonuses will always be met with resistance from the tax payer.
09:34 AM on 12/19/2011
The banks say they have to pay big salaries and bonuses to keep hold of the best staff. Is it the best staff, or is it the 'greedy' staff. Take away all bonuses, lower the salaries for the top brass, let them leave their posts and pave the way for a new generation of people who would probably be grateful to earn 1/2 of the current top bankers and not complain about bonuses, and probably do a better job
01:37 PM on 12/19/2011
If the current top brass are "the best staff" god help us if they ever got any worse staff.
And they should be promoting staff within anyway, training them to do the jobs they want them to do, not fetching any Tom, Dick and Harry from all over the world, who barely speaks English let alone can count.
09:11 AM on 12/19/2011
The banks must be shaking in their boots LOL