Lloyds plans 275% annual bonuses

LLOYDS Banking Group boss Eric Daniels could reap a potential £6.2 million in salary and share options for 2010 after the bailed-out bank beefed up its long-term incentive scheme, it emerged yesterday.

• Eric Daniels

The bank – which is 41 per cent taxpayer owned – said in its annual report that it recognised the need for "continued restraint" in remuneration, with salaries remaining frozen at 2008 levels.

But it is concerned executive pay could become "uncompetitive" and is increasing its long-term reward scheme to a maximum of 275 per cent of base salary – up from 200 per cent in 2009.

Daniels waived a 2.3m bonus due for his 2009 performance last month in the wake of public anger over bank pay.


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The 6.2m figure is a potential maximum of 1.03m in salary, a possible 2.33m annual bonus in shares as well as a further 2.85m in shares if the long-term scheme were to be awarded in full.

The remuneration committee said it recognised the "sensitivity of the operating environment and the fact the group is still in a loss-making position".

The bank said its plans for executive pay for 2010 were discussed extensively with shareholders.

The long-term scheme would be paid in shares after three years, but would have to be held for a further two years, while annual awards would be deferred into shares until 2012 and subject to clawback.


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Four executive directors will share performance-related pay totalling 4.17m.

Total boardroom remuneration, including non-executive directors and former directors who served in 2009, rose by 77 per cent from 5.6m to 9.9m.

Awards under the incentive plan for executive directors amounted to between 150 per cent and 185 per cent of salary.

The biggest award went to Truett Tate, head of wholesale banking, who received 1.12m on top of his 640,000 basic salary.


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Archie Kane, head of insurance and the group's senior executive in Scotland, was paid 885,000 in addition to his 590,000 salary.

Tim Tookey, financial director, earned 600,000 together with a bonus of 1.11m.

Helen Weir, head of retail banking, took a bonus of 1.06m on top of her 625,000 salary.

None of the executive directors took bonuses in 2008.


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In 2007 Kane received 787,000, Tate 738,000 and Weir 909,000. Tookey joined the bank in 2008.

The document reveals that Sir Victor Blank, former chairman who served on the board for nine months of the year, received 683,000 in total pay and benefits, against 669,000 in the previous year, but received no bonus. He donated three months pay from September to December, amounting to 160,000, to charity.

The current chairman, Sir Winfried Bischoff, who took up his post last September, was paid 211,000 in pay and benefits.