banking editor

Bank bosses are under growing pressure to take a pay cut after being told by regulators to slash £7.5bn of dividends.

Major lenders face a backlash from shareholders after they took an axe to dividends following pressure from the Bank of England.

In a letter to the chairmen of Britain's 350 biggest listed companies, industry trade body the Investment Association (IA) warned that companies which cancel dividend payments should take action on what is given to bosses too.

When they announced dividend cuts last week, none of the banks mentioned pay or bonuses. The bosses of Barclays, Lloyds, HSBC and Natwest owner Royal Bank of Scotland were paid £19.6m between them in 2019.

The IA said: "If a company cancels dividend payments or makes significant changes to their workforce’s pay, IA members support boards and remuneration committees that demonstrate how this should be reflected in their approach to executive pay."

三级成人视频One bank shareholder said lenders will be concerned about losing talented managers if pay is slashed too much.

三级成人视频Long-term incentive schemes designed to keep bosses in top roles for as long as possible are no longer going to pay out due to sharp falls in share prices, the investor said.

三级成人视频They added: "Maybe there would need to be some flexibility. We will have to think carefully about how to deal with this." 

三级成人视频Bank boards will discuss executive pay in coming months. The Co-operative Bank and TSB have already decided to axe bonuses for top brass following Threadneedle Street's demands.

The country's major lenders were told to cut dividends to free up vital funds and support the economy through a sharp recession as the lockdown leaves businesses across the country fighting to survive. 

三级成人视频Consultant Link Group said that profits were already a third lower over the last year than they had been in 2007 before the last crisis, with UK businesses generating £8.30 of profit on every £100 of sales compared to £14 in 2007.

Link warned that the coronavirus crisis could lop £170bn off UK profits in the next 18 months, hammering dividend pay-outs.

Banks across Europe have cut dividends to focus on supporting the economy. JP Morgan chief Jamie Dimon this week said the Wall Street bank would also consider a cut for the first time in its history if America suffers a deep recession.