FinancialAdvice.co.uk Logo

Qualified advisers answering your
Financial Questions
call 0800 092 1245

Lloyds Bank Chief Executive defends £1.7m bonus

14/02/2014

Lloyds Bank chief executive Antonio Horta-Osorio has defended his £1.7 million bonus, claiming that it is aligned with taxpayers’ interests.

The bank has increased its overall staff bonuses for 2013 to £395 million, up from £365 million the previous year. Mr Horta-Osario claimed the reason behind this, was due to increased performance, which seen the bank report it’s first pre-tax profit since the £20.5 billion government bail out, which was funded with tax-payers money.

The bank posted a pre-tax profit of £415 million, in comparison to the £606 million loss made in 2012.

Horta-Osario was quoted as saying: "I strongly believe you should link compensation with performance, and having increased our underlying profits by 140%, we thought it was appropriate to increase the bonus pool of the bank by 8%.”

He also pointed to the fact that 78% of the bonus scheme is in the form of shares, whilst 100% of Horta-Ontario’s bonus being paid in shares which cannot be cashed-in until 2019.

"I have also agreed to have additional conditions to my bonus... which is fully paid in shares, which aligns my interests with the interests of the taxpayer, so if the strategy we are pursuing proves itself wrong, that money can be clawed back."

However, the ‘Unite Union’ national officer Rob Macgregor disapproved of the bonus, especially after the bank gave its call centre workers a 2% pay rise and cut more than 35,000 jobs since the bail out.

He said: "The chief executive's £1.7m bonus, on top of shares worth millions awarded at the end of October, is a kick in the teeth to the taxpayer, and to hard-working staff who don't know if they will be next in line for the chop."

Need advice?



If you need to ask a financial questions then please contact our financial advisers online or over the phone to get help with your query.













Share this..

Related stories

Online banking fraud rises by 48%

27/03/2015 Following our story earlier this week about identity fraud being on the rise , Financial Fraud Action (FFA) has confirmed that loses from online banking fraud have risen by 48% in 2014. As consumers increasingly conduct their banking affairs online, fraudsters continue to adapt... Read More

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:



Latest News

Blogs

Helpful new tax year facts that could affect you and your money


Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.


Read more

Useful Links

Popular Searches

Please Enter More Details

 
Enter More Details
Continue