Lloyds bonuses cut as the bank claws back pay

Michael Bow
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LLOYDS Banking Group cut its bonus pool by three per cent last year to £365m, as it continued to claw back money from former senior executives, it said yesterday.

The bank, which is 39 per cent owned by the government, reduced the bonus pool from £375m in 2011, giving it one of the lowest bonus per employee ratios at £3,900 on average for each worker, it said.

The number of Lloyds workers earning over £1m a year is now just 25 – which the bank says is lower than rivals like Barclays, where 428 employees are paid over £1m and HSBC, where 204 people earn over £1m.

Fellow state-backed bank RBS has 93 staff on more than £1m a year.

The bank also said its remuneration committee had advised the board that it should claw back bonus awards made in 2010 to former executive directors.

It is believed this will cut the £1.45m payout to former chief executive Eric Daniels in 2010 by a further 40 per cent, having been slashed by 40 per cent in 2011. It leaves Daniels with around £250,000.

A host of other top staff and former executives – including Archie Kane, Truett Tate, Tim Tookey and Helen Weir – are also understood to be on the end of the stinging pay rebuke, slashing their bonuses by a further 25 per cent on top of a 25 per cent cut last year. Meanwhile current chief executive Antonio Horta-Osorio was handed an annual bonus paid in shares worth £1.5m, the bank said.

The bank has also awarded Horta-Osorio more cash under its long-term incentive plan, worth an expected £1.1m, based on a share price of 49.29p. This is on top of his £1.2m base salary. Lloyds shares closed at 47.85p yesterday.