Lloyds: 'No decisions taken on pay deals'

Published on Sunday 4 October 2009 21:49

LLOYDS Banking Group said it had taken no decisions over executive pay after reports over the weekend claimed that the lender was drawing up a multi-million-pound incentive programme.

It was reported Lloyds' remuneration committee was working on a scheme that would see the bonus of chief executive Eric Daniels matched to that of Royal Bank of Scotland boss Stephen Hester. His deal is potentially worth about 9.6 million.

The group risks stirring fresh anger about pay as it creates its first bonus scheme since the takeover of HBOS by Lloyds TSB, which resulted in the bank becoming 43 per cent owned by the taxpayer.

Sources close to the bank also denied claims that the bank's chairman, Sir Win Bischoff, planned to remove Helen Weir and Truett Tait from the board in an effort to streamline it.

Yesterday Lloyds said it was in the "very early stages" of a review of its remuneration policies.

In a statement, it said: "Earlier this year we confirmed our intention to undertake a review of the group's remuneration policies, including executive remuneration.

"Any decisions that are taken will be made within the context of this week's announcement about executive remuneration from the Treasury, the recommendations of the Walker Review and the FSA Code."

Five banks, including Lloyds and RBS, last week agreed to abide by internationally agreed curbs on bonuses.