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Lloyds throws weight behind Daniels amid succession talk

LLOYDS Banking Group last night moved to quash speculation that chief executive Eric Daniels is about to be replaced.

Talks of Lloyds hiring City head hunter JCA Group to draw up a short list of potential candidates was dismissed by the banking giant, which threw its weight behind Daniels.

A spokesperson said: “Eric Daniels is a very experienced chief executive and is successfully leading the largest integration ever undertaken in the UK banking sector. He has the aptitude, appetite, and energy, to lead the company forward.”

Souces close to Lloyds told City A.M. that the board fully supports Daniels and that they are not recruiting another chief executive.The Lloyds boss has been promised a £6.2m pay package should the bank’s shares rise to 114p as part of a three-year incentive package that was handed to him in 2007.

Last month, Daniels, who earns roughly £1m a year, waived his £1.6m bonus after public pressure.

JCA was said to have approached HSBC finance director Douglas Flint, former Prudential chief Mark Tucker and ex-JP Morgan Cazenove boss Naguib Kheraj.

It recently poached outgoing Wm Morrison boss Marc Bolland, who is about to become chief executive of Marks and Spencer.