Overcast

Overcast

max temp: 16°C

min temp: 12°C

ESTD 1874 Search

WIN A NEW HYUNDAI i10 - See the EADT on June 8 for full details

Banking: Lloyds lifts bonus payout by 8% following return to annual profit

09:29 13 February 2014

Lloyds Banking Group boss Antonio Horta-Osorio.

Lloyds Banking Group boss Antonio Horta-Osorio.

Lloyds chief executive Antonio Horta-Osorio is in line for a potential shares bonus worth £1.7million for 2013 and staff will share a £395m payout after the group today reported a return to the black.

shares

The taxpayer-backed lender said Mr Horta-Osorio’s windfall was deferred for five years and dependent on performance conditions. The wider staff bonus pot is 8% higher than the £365m paid out for 2012.

Details of the bonuses came as Lloyds posted bottom line profits of £415mn for 2013, against losses of £606m in 2012, and said underlying profits more than doubled to £6.2billion.

This came despite a soaring bill for mis-selling compensation, which was revealed alongside headline profit figures in a shock update earlier this month.

Mr Horta-Osorio said he would take his bonus for 2013, despite decisions by his counterparts at Barclays and Royal Bank of Scotland to waive their annual payouts.

However, the bonus is still dependent on the Government selling another 50% of its remaining 33% stake or the share price holding above 73.6p, the average price paid by the Government when the bank was rescued, consecutively for six months.

He defended the decision to increase the overall staff bonus pool in the face of calls for a cut following another £1.8bn set aside for payment protection insurance (PPI) compensation and the group’s record £28m fine in December over incentive schemes rewarding staff with “champagne bonuses” that drove mis-selling.

Lloyds said the potential staff bonus pot had seen a “material” reduction to reflect mis-selling provisions and December’s fine, while the group’s remuneration committee is also due to discuss clawback of past payouts to individuals relating to the Financial Conduct Authority penalty at the end of last year.

Mr Horta-Osorio added that the bonuses reflect the “excellent progress” made over the last year.

The payout means the majority of staff, around 91,000 employees, will receive payouts averaging £4,500 each, although cash handouts are capped at £2,000 and bonuses are fully deferred for directors.

shares

2 comments

  • cameron stop this stupid bonus and make them put the money into the flood scheme.

    Report this comment

    TERENCE MANNING

    Thursday, February 13, 2014

  • This British Tax Payers is where most of your hard earned money is going !, 'creamed' off at the top !!, whilst the 'plebs' scratch around on the ground !

    Report this comment

    freedomf

    Thursday, February 13, 2014

The views expressed in the above comments do not necessarily reflect the views of this site

Rooney Anand, chief executive of Greene King.

Proposals from pubs and brewing company Greene King designed to address concerns over its agreed acquisition of the Spirit Pub Company look set to be backed by the UK’s competition authority.

Peter Bennell of Haven Power.

Haven Power, the specialist supplier of electricity to UK businesses, has signed a deal with Thames Water worth more than £500million over the next five years.

Retail sales are

Retail sales are “bounding ahead” as falling prices and a boost to consumer spending power is giving retailers the most upbeat outlook for 27 years, according to new figures.

A Ryanair passenger plane after take off from Stansted Airport.

Budget airline Ryanair saw profits growth take off last year as a revamp designed to improve its image and attract business customers sent earnings soaring by 66%.

The New Anglia Growth Hub team, including its business growth advisers who offer free support to businesses in Suffolk and Norfolk.

New Anglia Growth Hub has beaten its target of providing support for 3,000 businesses in its first year.

Andrew Rowe, managing director of Concertus.

Andrew Rowe, managing director at Ipswich based Concertus Design & Property Consultants, has been appointed as finance director for SPACES, the new society that has been formed from a merger between SCALA (Society for Construction and Architecture in Local Authorities) and SCEME (Society of Electrical and Mechanical Engineers serving Local Government).

Greene King apprentice Tamara-Leigh Kirkham.

Greene King has been named VQ Large Employer of the Year for 2015, in recognition of its support for members of its workforce undertaking vocational qualifications (VQs).

Sizewell A and B

Staff at the redundant Sizewell A nuclear power station will have to wait to find out if their jobs are safe from planned redundancies.

The opening of Precision Marketing's new headquarters in Bury St Edmunds.

An expanding marketing services firm celebrated the official opening of its new head office in Bury St Edmunds yesterday.

Abby Curtis who is opening Pump and Grind coffee shop in Great Colman Street with Tom Kerridge

The business team behind a new cafe have said they are disappointed they will not able to serve alcohol when opening for the first time on Saturday.

Most read

Most commented

Topic pages