Performance-Related Pay

Some toxic agents at HBOS have been paid hundreds of thousands of pounds because, as a spokesbeing said, "it is a matter of law that employees at every level have a legal right to their contractual entitlements" unless breaking the law is cheaper. The contractual entitlements for HBOS' directors apparently amount to ten per cent of their shares' value at the time the shares were granted, rather than the somewhat crunched value at the time of the takeover by Lloyds. The chief executive, Andy Hornby, who refused some of his own entitlements, may have profited by a quarter of a million or so, or slightly less than the cost of a few inches of snow.

Speculation being such a demonstrably wonderful thing, there is "growing speculation in Westminster that the government will be forced to follow Barack Obama in the US and impose pay restrictions on bank executives who have sought bailouts". If the speculation proves true, it will doubtless be the first time New New Labour has followed White House policy because it was forced to. If bombs were involved, no doubt that would be a different matter.