He says it's because the year was "a very difficult one" after the Libor scandal and the mis-selling of PPI and interest rate swaps.
What will he lose?
His package consisted of:
£1.1m basic pay
Up to £2.75m bonus, paid in shares over 3 years (it’s up to 250% of salary)
Up to £4.4m long term incentive, in shares (up to 400% of salary)
£363,000 cash in lieu of pension (33% of salary)
Taking the package to a potential £8.6m
So not taking the bonus reduces the potential total to just under £6m, effectively, a 32% pay cut – in theory, anyway.
However he was only appointed at the end of August, so while he is giving up his bonus for the whole year, some of it is an amount applicable to his previous job as head of the retail bank.