LLOYDS chief executive Eric Daniels is line to forego a long-term incentive bonus worth millions of pounds as the bank’s share price continues to linger in the doldrums, City A.M. can reveal.
Daniels, whose pay is under scrutiny this week ahead of Lloyds’ annual results on 26 February, is now likely to see his combined salary and bonus package shrink to a maximum of £3.5m, just over half of the total he would have been awarded including the long-term payout.
However, the figure would still be substantially higher than the £1.1m he received in 2008, after giving up his bonus in the wake of the bank’s disastrous takeover of HBOS.
Under the three-year incentive scheme, awarded in 2007, Daniels was entitled to an extra £3m at the discretion of the Lloyds remuneration committee. But the bank is thought to be unwilling to pay out while the share price – which hit pre-crisis highs of over 600p – lingers in the lower double figures. The stock closed at 46.58p on the London Stock Exchange on Friday.
A Lloyds spokesman said no decisions had yet been taken about potential bonus awards for executives.