RBS and Lloyds Banking Group have agreed to not pay cash bonuses this year in return for a £30bn bailout by the Treasury.
The banks have agreed to defer this year’s bonuses for bankers earning more than £39,000 until 2012.
The move is intended to ensure that “remuneration is better aligned with the long-term performance for their banks,” the Guardian reported.
The announcement comes ahead of an appearance by David Walker, who is reviewing City pay and practices, at the Treasury select committee today.
