Lloyds to cut bosses’ bonuses
21 February 2012 at 15:55
Lloyds Banking Group is to cut the bonuses paid to its top executives in a move that will affect 13 of its senior employees, including five executive directors, it was announced yesterday (February 20th).
The bank said that the Financial Services Authority had been kept up to date with all the deliberations that led up to the decision, which will see its former chief executive Eric Daniels receive a cut of 40 per cent to his bonus.
Four other directors will face a bonus reduction of 25 per cent, while all members of the group’s executive committee will receive five per cent less than originally planned.
Lloyds admitted that the decision was based on its mis-selling of payment protection insurance, with the group saying the bonus pool would have been lower if it had known the outcome of the Judocial Review in April 2011.
A statement from the bank said: “The board wishes to emphasise that its decision is based entirely on the principle of ‘accountability’ and in no way on culpability or wrong-doing by the individuals concerned.”
Figures from the FSA showed PPI redress paid up to November 2011 totalled £1.5 billion, with a record £379 million paid out that month.
Posted by James Harrison