Lloyds Withholds Bonuses From Former Directors Over HBOS Deal
Lloyds Banking Group Plc (LLOY), Britain’s largest mortgage lender, has denied former Chief Executive Officer Eric Daniels and three other departed directors about 2.3 million pounds ($3.6 million) of bonuses due to be paid out following the integration of HBOS Plc.
Daniels, 60, had been awarded 2.3 million shares following the HBOS takeover, which would have been valued at about 840,000 pounds at yesterday’s closing price. No former directors will receive so-called integration payouts, London-based Lloyds said today in a statement.
Daniels stepped down as CEO of Lloyds in February last year and remained on the payroll until September. In 2008, he led the bank’s takeover of HBOS, the U.K.’s biggest mortgage lender, whose losses led Lloyds to cede a 41 percent stake to the government and seek a taxpayer-funded bailout of more than 20 billion pounds.
Archie Kane, the bank’s former group insurance director had been in line for a 479,000-pound payout while Truett Tate, the head of the wholesale unit, was set for a 519,000-pound award and Helen Weir, the former head of the retail bank will not receive the 507,000 pounds she was awarded.
Lloyds last month said Daniels will also lose 40 percent of his final bonus as he and 12 other current and former executives were penalized for improper sales of insurance products which led the bank to set aside 3.2 billion pounds to compensate customers.
The Guardian newspaper reported the story earlier.
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