Lloyds Banking Group chief executive Eric Daniels has decided to waive his £2.33 million ($3.63 million) bonus for 2009, joining a number of other UK banking CEOs who have decided to bow to public pressure and forgo such payments.

Mr Daniels has informed the [Lloyds] board, however, that he wishes to waive his bonus, the second consecutive year that he has done so. Mr Daniels has taken this action because he believes that the excellent progress the group is making, based on the considerable contribution of many colleagues across the company, is in danger of being obscured by the current debate on executive bonus awards in the banking sector," Lloyds Banking Group said in a statement today.

"Appropriate 2009 bonus scheme awards will be made to executive directors other than Mr Daniels on the basis of their individual contribution and the group's overall performance," the statement said.

Bonuses will be paid in shares and completely deferred until 2012 and are subject to clawback. 

In this decision Mr Daniels is accompanied by Stephen Hester, chief executive of Royal Bank of Scotland, and John Varley and Bob Diamond, respectively chief executive and president of Barclays, who have all forgone their bonuses for 2009.

Lloyds Banking Group is due to issue preliminary results for 2009 on 26 February.