Banker-bashing and the sector's tattered reputation are putting young people off a career in banking, the boss of taxpayer-backed Lloyds Banking Group warned today.
Soaring distrust of banks and embarrassment about working for one is causing a damaging talent drain, Lloyds chief executive Antonio Horta-Osorio said in a speech at Oxford University's Said Business School.
The 39% taxpayer-owned lender, which has itself been scarred by a series of scandals including customer mis-selling, said it "urgently" needs to change perceptions of the industry to make it an attractive career.
Since the 2008 financial crisis triggered a wave of bank failures and the part-nationalisation of Lloyds and Royal Bank of Scotland, the banking industry has been hit by a series of scandals.
Lloyds has set aside nearly £7 billion to compensate customers mis-sold payment protection insurance (PPI), while the total industry bill for mis-sold PPI is expected to top £15 billion.
Banking has also been hit by the Libor rate-rigging scandal at lenders including Barclays and RBS, mis-selling of complex interest rate swaps to small businesses and high bonuses.
Mr Horta-Osorio said the sector must rebuild its reputation to attract young people.
He said: "We want the best and the brightest to see banking as a credible career choice. This is vital for the industry's long-term viability."
Lloyds said its research shows 28% of students would be too embarrassed to tell friends they work in a bank, while 41% said they distrust banks and finance firms.
Another 56% said they trust banks less than they did five years ago.
Only 2% said they were likely to pursue a career in banking and finance, compared with 26% who said they were likely to work in the public sector.
Mr Horta-Osorio added: "The next generation should see banking as an industry that helps to build economic wealth and is playing its part as a useful member of our local communities."
Lloyds handed 25 of its staff £1 million or more in pay and bonuses last year, with five employees picking up in excess of £2 million.
Mr Horta-Osorio was paid £2.5 million in pay and deferred bonuses last year, and also received £1.1 million in shares from a long-term incentive scheme that will be released in 2016 subject to performance targets.
Despite £570 million of losses in 2012, staff still shared a £365 million total bonus pot, equivalent to £3,900 per employee.
Banks have also been culling staff heavily in recent years. Lloyds recently announced plans to axe 850 staff and close a large office in Southend, Essex.
Lloyds, HSBC and Barclays have announced cuts of around 5,500 jobs since the beginning of 2013, according to a union.
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