If the right were really worried about inflating public sector pay, they may want to start with the bonuses of the public sector banks
It is widely reported this morning that bank bonuses totalled £14 billion this year – the same as last year and up from £8 billion a decade ago. But falling under the radar is the fact that the bonuses paid out by the temporarily nationalised banks are greater than bonuses paid to every single public sector worker in the country.
Data from the Office for National Statistics (replicated below) shows that although just 1 per cent of the workforce work for publicly owned banks, they paid out 1.6 per cent of the country’s £35 billion bonus pool. By contrast, the public sector, which employs close to one in four Britons, paid out just 1.5 per cent.
The staggering statistics underline the capitulation by the Government on bank bonuses. Earlier this year, the Chancellor cleared the way for bonus payments to the bosses of the bailed-out banks – Royal Bank of Scotland and Lloyds Banking Group. Whereas in the past two years, the chief executives of both banks have waived their bonus payouts.
Reacting to the news, Lord Oakeshott, the former Liberal Democrat Treasury spokesman, said: ‘These banking bonus figures show sheer greed.
‘Our country won’t believe “We are all in this together” until the Government gets a grip on bank bonuses.’
George Osborne should take note.
64 Responses to “Osborne lets public bank bonuses rip, despite right’s obsession with public sector pay”
jonathan
It seems as if there is an insane obsession amongst bankers where their worth and status are measured by how much bonus they can give themselves. I may be wrong here but there seems to be no social contribution measure such as the banks contribution to GDP, that could balance this blatant greed.
Dave Citizen
Jonathan, I think you’ve hit the nail on the head: there is no way of legitimating this blatant greed. It’s impossible for a person to work so much better or take so much bigger risks than say a soldier, that they ‘deserve’ such rewards.
About all one can say is that, at the moment, we let them get away with it so they grab it while they can.
Leon Wolfson
One good concept I heard proposed today is a bonus tax, with a rate based on the multiple over the lowest salary worker in the company.
Mr. Sensible
So the outcome of project paper bag is complete double standards on the right…
Ed's Talking Balls
‘double standards on the right’
Please tell us all of the left’s courageous actions on banking excesses over the last decade or so, Mr. Sensible. We’re all ears…