Former Lloyds boss Daniels to lose £580,000

By JENNIFER O’MAHONY
Published on Tuesday 21 February 2012 00:00

THE former chief executive of Lloyds Banking Group will be stripped of 40 per cent of his £1.45 million bonus, the company confirmed yesterday.

Eric Daniels, who had a basic salary of £1.04m, will lose £580,000 of his 2010 award and four former or outgoing directors – Tim Tookey, Helen Weir, Truett Tate and Archie Kane – will lose 25 per cent or up to £262,500 in the first “claw back” operation of its kind since the financial crisis. Eight other unnamed executives below board level will also lose 5 per cent of their bonuses.

Tate had been due a bonus of £1.05m, while Tookey and Weir were expecting £942,000 and £875,000 respectively. Kane had been entitled to a bonus of £767,000. Lloyds has cut nearly £1.5m in total off the bonuses of top executives.

The move follows pressure from the Financial Services Authority and politicians and the impact of the payment protection insurance (PPI) mis-selling scandal which cost the 41 per cent state-owned bank £3.2 billion in 2011.

A Lloyds spokesman said: “Had the outcome of the judicial review into PPI in April 2011 been known, at the time of the award of the 2010 bonus in February 2011, the bonus pool would have been lower and individual bonus awards would also have been lower.

“The board wishes to emphasise that its decision is based in no way on culpability or wrong-doing by the individuals concerned.”

The spokesman added that the 2011 bonus pot was also likely to be affected.

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