British bank bosses give up bonuses amid coronavirus crisis
Top bosses at British banks including Natwest and Lloyds have taken salary cuts and ditched bonuses worth millions of pounds as consumers and businesses suffer the impact of the coronavirus outbreak.
Natwest chief executive Alison Rose will donate a quarter of her remaining salary for 2020 — set at £2.2m per year — to a coronavirus fundraising appeal. She will also forgo a bonus worth up to £1.9m.
“I am fully aware of the challenges being faced by so many people across the country and my priority is to make sure we do everything in our power to support our customers through this incredibly difficult and unprecedented time,” said Rose.
Natwest, which rebranded from Royal Bank of Scotland earlier this year, remains 62 per cent owned by taxpayers following its £45bn state bailout in the 2008 financial crisis.
Chairman Howard Davies, who earns £75,000, will also donate a quarter of his remaining pay to charity.
Lloyds said its senior executives would not take a bonus this year “in solidarity with the communities in which we operate and in recognition of the priorities of our stakeholders”.
Chief executive Antonio Horta-Osorio had his base pay cut earlier this year following a backlash over his £6m payday in 2019. He will forgo a bonus of up to £1.8m.
Similar moves were announced by HSBC, which said chief executive Noel Quinn and chief financial officer Ewen Stevenson would donate 25 per cent of their salaries for the next six months to charity.
They will also give up bonuses worth £1.4m and £800,000 respectively. Chairman Mark Tucker will donate his entire £1.5m director’s fee.
Meanwhile Standard Chartered said chief executive Bill Winters and finance chief Andy Halford would waive their cash bonuses for this year and make “significant” personal donations to the lender’s Covid-19 assistance fund.
It comes after the Bank of England ramped up pressure on lenders by asking them to scrap cash bonuses and dividends in a bid to conserve capital.
British banks, which are still attempting to restore their reputations after the 2008 financial crash, have come under fire for making it hard for small businesses to access government-backed loans.
However, lenders have blamed the issues on flaws in the government’s original support schemes.