Britain's state-rescued Lloyds Banking Group announced today that its chief executive Eric Daniels would not take his annual bonus of £2.3m (€2.6m).
The group, which is 43% state owned after being bailed out with billions of pounds, revealed the news in a statement amid intense media speculation on the issue before LBG's 2009 results on Friday.
Lloyds' remuneration committee decided to award Daniels his full annual bonus but he waived it for the second year in a row, said the statement from Chairman Sir Win Bischoff.
The news comes after Barclays bank last week announced that its top executives had shunned their latest annual bonuses amid growing public outrage over pay.
The Financial Times meanwhile reported today that the boss of the Royal Bank of Scotland - which is also state-rescued - would refuse his 2009 bonus.
RBS chief executive Stephen Hester will waive his right to a possible £1.6m (€1.8m), the bank is set to disclose on Thursday when it will also unveil its annual results.
There is widespread public anger about the banking sector's bonus culture, which some observers blame for encouraging excessive risk-taking and helping to tip the world economy into recession.
