LLOYDS’ chief executive is in line for a bonus of up to £4.4m for 2012, it emerged over the weekend, after the bank’s share price soared and complaints dropped last year.
Antonio Horta Osorio was brought in to clean up the bank, and it is thought that solid progress towards that goal, as well as the doubling of the bank’s share price since June, will result in a healthy financial reward.
Horta Osorio is eligible for a bonus of up to 225 per cent of his base salary of roughly £1m, plus a long-term incentive plan (LTIP) of up to 275 per cent. That means he can get a bonus of up to £2.25m this year and £2.75m in three years’ time when the LTIP vests.
He will not gain the full £2.25m this year – one of the targets is making the bank profitable, and PPI compensation payments mean that is unlikely.
The Sunday Times reported he is in line for a total bonus of up to £4.4m – a figure which suggests an immediate 2012 bonus of roughly £1.6m.
Meanwhile JP Morgan is reportedly considering slashing chief executive Jamie Dimon’s bonus for 2012 on the back of the multi-billion London Whale trading losses. He was the highest paid boss, raking in $23.1m in 2011.