Sunday 19 February 2012

Lloyds Bank strips five directors of more than £1 million in bonuses


It will be the first time a British bank has exercised a “clawback” option on executive pay packages since the financial crisis and will lead to calls for similar moves at other lenders, including the Royal Bank of Scotland. The Daily Telegraph has learned that Lloyds is taking back a bonus from senior bankers over their role in the mis-selling of payment protection insurance (PPI). Eric Daniels, Lloyds’ former chief executive, will lose at least £360,000 of his 2010 bonus. Four other current and former directors will each have to forgo about £250,000. The move comes after weeks of pressure from politicians and consumer groups for the banking sector to answer concerns that some bonus awards do not match individual performances. The Financial Services Authority has also called for Britain’s banks to reflect one of the worst customer mis-selling scandals in recent memory in the pay packages of those responsible.