Lloyds Banking Group claws back bonuses from senior employees

The board of Lloyds Banking Group will claw back a number of bonuses for 2010 from its senior employees, including five executive directors.

Eric Daniels, the bank’s former chief executive, must surrender 40% of his £1.45 million deferred share award. Four other executives will yield 25% of their awards, and all members of the group executive committee will hand back 5%.

The decision to claw back the bonuses is based on the outcome of the Judicial Review into the Payment Protection Insurance in April 2011. 

Last year, the bank had to compensate several customers sold payment protection insurance, which in many cases was unsuitable. PPI is supposed to pay the interest on mortgages and credit card bills if the policyholder loses their job or falls ill.

A statement from Lloyds Banking Group, said: “The board wishes to emphasise that its decision is based entirely on the principle of accountability and in no way on culpability or wrong-doing by the individuals concerned.”

It was also confirmed that the bonus pool for 2011, which has not yet been announced, will also be affected.

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