Lloyds bosses' bonuses slashed
Published 21/02/2012 | 17:00
Lloyds Banking Group stripped 13 executives of some of their bonuses for 2010 in the wake of the scandal over payment protection insurance.
Former chief executive Eric Daniels will lose 40% or £580,000 of his £1.45m award, while four other current and former directors will have to forgo sums of up to £262,500. Eight executives, below board level, will be stripped of 5% of their bonus, the bank added.
Amid pressure from politicians and the Financial Services Authority, it will be the first time a bank has used a clawback option on pay since the financial crisis.
The impact of the mis-selling scandal, which involved the sale of insurance alongside loans to cover repayments if borrowers fell ill or lost their jobs, cost the bank £3.2bn in 2011, prompting yesterday's clawback move.
Lloyds said its bonus pool and individual awards for 2010 performance would have been lower had last April's High Court victory for consumers in securing rights to PPI compensation been known about at the time.
Lloyds added: "The board wishes to emphasise that its decision is based entirely on the principle of accountability and in no way on culpability of wrongdoing by the individuals concerned."