Lloyds Chairman Blasts Bonuses

Banker-bashing has grown to such an extent that it is now even coming from within the Square Mile.

Chairman of Lloyds of London, John Nelson, has said that he sympathises with public anger over the pay awarded to bankers – and that it had become “out of sync” over the last few years.

Nelson’s criticism follows last week’s call from two of the country’s most powerful investor lobby groups – the National Association of Pension Funds, and the Association of British Insurers (ABI) – for banks to show more restraint.

Barclays’ recent attempt to curb pay by cutting bonuses for its 24,000 staff in its investment banking arm, Barclays Capital, to £64,000 was described by the ABI as demonstrating “business as usual”, because the cut of 32% exactly mirrored the bank’s fall in profits.

Banking has also been attacked by the chief executive of the Office of Fair Trading, John Singleton for remaining uncompetitive despite repeated investigations and warnings.

Speaking on BBC Radio, former banker Nelson said: “I have sympathy for some of the attacks that have been made against the financial services industry. If you look at the aggregate levels of compensation being paid in certain sections, one has to ask whether the calibration somehow has got out of sync over the last few years. That applies particularly to the banking sector.”

Founded 323 years ago, Lloyds of London is worth £50bn – taking in £22.5bn in annual insurance premiums – and the words of its chairman are likely to carry considerable clout among those within the Square Mile.