Lloyds bows to pressure

STATE-BACKED Lloyds Banking Group yesterday bowed to political pressure by stripping four former directors, including ex-chief executive Eric Daniels, of their long term incentive plan awards.

According to Lloyds’ annual report, the quartet were set to receive shares under the long term incentive plan (LTIP) for the integration of HBOS following its bailout in 2009, but a Lloyds spokesman told City A.M.: “No integration LTIPs for former directors have been released.”

Daniels, alongside former head of retail Helen Weir, the former insurance boss Archie Kane, and Truett Tate, the ex-corporate banking head, would have received around £2.2m in shares had the payout been made.

According to Lloyds’ closing share price, Daniels would have received around £800,000 with his three fellow ex-directors receiving up to £500,000 worth of shares each.

It is the second clawback by the bank, which held back payouts last month, including to Daniels, due to its role in the mis-selling of payment protection insurance

The annual report showed that António Horta-Osório, the chief executive took home £1.9m in 2011 when his £1m salary was enhanced by bonuses and pensions.