As the row over bankers’ bonuses rumbled on, Lloyds, now 43% owned by the taxpayer, made clear it had negotiated the deal with its shareholders, including UK Financial Investments (UKFI), the body set up to manage the public stakes in financial firms, as it embarked on its ill-starred merger with HBOS earlier this year. This led to the loss of more than 11,000 jobs.

It is understood the bonuses will be based on early 2009 wages and calculated in late 2011, depending on the bank’s performance and the “success” of its integration with HBOS. The payments will be made in three years’ time.

A spokesman for Lloyds, noting its scheme was “very closely aligned” to the merger, said: “We introduced a new long-term performance plan earlier this year following extensive consultation with our shareholders, including UKFI. There has been no payout under this plan, nor will there be until the spring of 2012. If any payments are made, they will only happen if stretching performance targets are met.”

It is estimated that bonuses of up to 80% would mean £2.4 million for the Lloyds board, including £828,000 for Eric Daniels, its chief executive.

Lloyds is looking to create annual cost savings of £1.5 billion as a result of the merger. This week, it announced plans to reduce the benefits staff receive under its final salary pension schemes.

Elsewhere, the heat between the Royal Bank of Scotland and the Government appeared to be dissipating as the bank, based at Gogarburn near Edinburgh, indicated it would slash its own executive bonuses.

Sources at the institution -- which was compelled to give the Government power over its bonus pot as part of its entry into a scheme to insure its toxic assets -- stressed bonuses in its investment banking division would be “at the low, low end of the scale” even if that meant losing experienced staff to better-paying rivals.

It has been claimed RBS directors could threaten to quit the bank if the Treasury used its power to impose a cap on the bonus pot.

The Government has warned it might veto the size of the RBS bonus pool for 2009, which is thought to have increased by 50% on last year to £1.5bn in the wake of rising stock markets and the beneficial effects of stimulus measures on the economy.

RBS, which will be 84% state-owned under the terms of the Asset Protection Scheme, has to agree the size of its pay-outs with UKFI.

The bank has warned a clampdown on the amount it pays to its staff would put it at a competitive disadvantage and threaten its ability to recover and therefore return the taxpayer’s £46bn investment.

Lord Myners, the City minister, stoked the argument by urging fat cat bankers to “come back into the real world”.

Meantime, Gordon Brown’s spokesman pointed out that there was an agreement between RBS and UKFI that the bank’s bonuses would not be in cash and would be deferred until 2012. “Those details are documented. There’s an agreement. It’s as simple as that,” he declared.

“When that agreement is effective is for the RBS senior management and UKFI to agree,” he said, noting that the same principle applied to other British banks.

In a separate development, Barclays’ investment arm, Barclay Capital, increased its basic salaries for its 21,000 staff as it looks to boost staff compensation in line with competitors and comply with G20 guidelines on bonuses.

Asked whether the Prime Minister was concerned that banks like Barclays could get round restraints on bonuses by increasing salaries, his spokesman replied: “The Government clearly can’t interfere in individual salaries. That wouldn’t be appropriate.”