Bank of Scotland owner Lloyds Banking Group reveals new boss

Bank of Scotland owner Lloyds Banking Group has appointed the head of HSBC’s high street banking arm as its next chief executive.

Lloyds Banking Group is also behind the Bank of Scotland and Scottish Widows brands.
Lloyds Banking Group is also behind the Bank of Scotland and Scottish Widows brands.

Charlie Nunn will replace Antonio Horta-Osorio, who is stepping down in the summer and is credited with turning around the bank’s fortunes in the wake of the financial crisis.

Nunn will be expected to get to grips with the potential for negative interest rates – an idea flagged by the Bank of England.

The father of four will start once he can agree a leaving date with HSBC – having a six-month notice period and six-month non-compete clause.

The new boss’s pay is expected to come under close scrutiny after his predecessor was criticised over large bonuses and pension contributions. Horta-Osorio trousered a total of £4.73 million last year – down on the £6.54m a year earlier.

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Lloyds confirmed that Nunn will be paid a basic salary of £1.125m – down 11.3 per cent compared with his predecessor. He will also receive an annual fixed bonus of £1.05m, a £45,000 benefits allowance for a car, and medical insurance.

Pension contributions will be set at 15 per cent, which is down from the 33 per cent Horta-Osorio received and an area of particular criticism because other staff receive far lower contributions.

Nunn will also be entitled to a short-term bonus worth up to £1.575m, or 140 per cent of his basic salary. However, he has waived the chance of getting long-term bonuses worth up to 400 per cent of his salary, opting instead to receive a maximum of 150 per cent.

Nunn said: “I feel particularly lucky to be joining Lloyds Banking Group at this important time. Lloyds’ history, exceptional people and leading position in the UK means it is uniquely placed to define the future of exceptional customer service in UK financial services.

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“I look forward to building on the work of Antonio and the team and their commitment to helping Britain prosper.”

Prior to joining HSBC, Nunn worked for management consultancy McKinsey and previously spent 13 years at Accenture in the US, France, Switzerland and the UK.

Robin Budenberg, incoming chairman of Lloyds, which also owns Scottish Widows, from January, said: “I am excited about Charlie’s vision for Lloyds Banking Group, as well as his passion for and commitment to our purpose of helping Britain prosper.

“Given his career track record, he will bring world-class operational, technology and strategic expertise to build on the strengths of the existing management team. I look forward to welcoming him to the group.”

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The group is currently undergoing a restructuring and closing more of its high street branches as the take-up of online banking services accelerates, with 56 sites facing the axe.

Earlier this month, it announced plans to cut some 1,070 jobs, mainly in its group transformation and retail banking teams.

Bosses said the net reduction would be 730 roles, with 340 new positions created across the business.

That followed a similar announcement in September, with 865 jobs going mainly in its insurance, wealth and retail teams.

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Bank of Scotland owner Lloyds takes axe to hundreds more jobs

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