Lloyds Banking Group CEO Charlie Nunn is on track to receive a significantly increased pay package if his company follows suit with its rivals and proposes a 45% rise in maximum annual pay, sources close to the matter have revealed. The move would catapult Nunn into a league of high-paying bankers who are among the most highly compensated professionals globally.
If approved by shareholders, Nunn's new pay package could be worth as much as £13.2 million for a single year, up from an offer of £9.1 million currently on the table. This is in line with trends at rival banks such as Barclays and HSBC, where executives are receiving higher payouts following the scrapping of a cap on banker bonuses.
Critics argue that lifting the bonus cap would remove a key incentive for bankers to engage in risky behavior that destabilized the financial system during the 2008 crisis. Instead, some have accused regulators of inadvertently creating an environment in which banks can simply inflate salaries to make up for lost earnings potential.
The UK's decision to lift the banker bonus cap was first introduced under former Chancellor Kwasi Kwarteng in 2022 and came into effect as part of post-Brexit rules last year. Proponents argue that higher pay is necessary to attract top talent, particularly from the US, where bankers are generally better rewarded.
Last year's annual reports for rival banks such as NatWest and HSBC showed significant increases in executive pay following the scrapping of the bonus cap. Barclays also reported a 45% rise in maximum pay for its CEO, with a potential payout of up to £14.3 million if targets are met.
If approved by shareholders, Nunn's new pay package could be worth as much as £13.2 million for a single year, up from an offer of £9.1 million currently on the table. This is in line with trends at rival banks such as Barclays and HSBC, where executives are receiving higher payouts following the scrapping of a cap on banker bonuses.
Critics argue that lifting the bonus cap would remove a key incentive for bankers to engage in risky behavior that destabilized the financial system during the 2008 crisis. Instead, some have accused regulators of inadvertently creating an environment in which banks can simply inflate salaries to make up for lost earnings potential.
The UK's decision to lift the banker bonus cap was first introduced under former Chancellor Kwasi Kwarteng in 2022 and came into effect as part of post-Brexit rules last year. Proponents argue that higher pay is necessary to attract top talent, particularly from the US, where bankers are generally better rewarded.
Last year's annual reports for rival banks such as NatWest and HSBC showed significant increases in executive pay following the scrapping of the bonus cap. Barclays also reported a 45% rise in maximum pay for its CEO, with a potential payout of up to £14.3 million if targets are met.
Banks are already making loads of cash, but it's not fair that the CEOs get paid more and more while regular people can't even afford a house 
. The bonus cap was meant to prevent bankers from taking crazy risks that hurt the economy, so lifting it just makes me think they're more interested in lining their own pockets 
.
What's next? Are they going to start paying us minimum wage and expect us to be grateful? 
I just wish someone would ask themselves if this is really what we need in the banking industry... 
It's also interesting to note that this trend is happening globally, which might be a sign that there are bigger issues at play than just UK regulations. What do you think? Should we prioritize stability over high pay? 
- Ray Kroc
. And what about those who don't get paid that much? Are they supposed to feel like they can compete with these high-flyers? 
It's all about who you know and where you're willing to take risks. Risky behavior that brought down the financial system in 2008? Worth £13.2 million? 
. Don't wanna see them leaving to work for those pesky US bankers 
.
Do we really need to be paying them that kind of money? It feels like there's a disconnect between what these people are making and the struggles of everyday people who are just trying to make ends meet 
...
Seriously though, is that really how we want to attract top talent from the US? I don't think so. It feels like this cap on bonuses was supposed to be a way to curb some of that reckless behavior that got our financial system into trouble back in 2008... and now it's just getting rolled back out. 
