Lloyds Banking Group cuts bonuses after PPI hits profits again
Lloyds Banking Group may have hiked its dividends, but its workers are in for less of a treat. In a statement today the lender said its 2015 bonus has been cut to £353.7m.
That figure is 4.3 per cent lower than last year's £369.5m.
As a percentage of pre-bonus underlying profit, the bank's total bonus has fallen to 4.2 per cent, from 4.5 per cent last year.
The bank added that cash bonuses remain capped at £2,000, with extra amounts paid in shares, which are subject to deferral and performance adjustments. Average bonus awards across the entire company was approximately £4,600, it said.
Meanwhile, chief executive Antonio Horta-Osorio will be granted a deferred bonus of 723,977 shares, currently worth just under £500,000.
Lord Blackwell, Lloyds' chairman, said the bank's bonus structure is "intended to provide a clear link between remuneration and delivery of the group's key strategic objectives".
"We want to ensure colleagues are empowered, inspired and incentivised to do the right thing for customers.
"Colleagues are rewarded in a way that recognises the very highest of expectations in respect of conduct and customer treatment, and when behaviour falls below acceptable standards, it is important that accountability is taken collectively as well as individually. This is particularly the case when dealing with, and learning from, mistakes of the past."