Lloyds Bank CEO Horta-Osorio May Receive a $2.1 Million BonusGavin Finch
Lloyds Banking Group Plc Chief Executive Officer Antonio Horta-Osorio could receive a 1.4 million-pound ($2.14 million) bonus for 2012 if the U.K. breaks even on its investment in the lender, according to a person with knowledge of the plan.
To get the award, the shares will need to rise to the 73.6 pence price at which the government bought its 39 percent stake in the lender in 2008, said the person, who asked not to be identified because he isn’t permitted to talk publicly. Lloyds traded at 54.7 pence at 2:33 p.m. in London. A final decision on the award hasn’t been made, the person said.
Horta-Osorio didn’t take a bonus for 2011 after the bank reported a full-year loss that year and he took a nine-week absence for exhaustion. He’s contractually entitled to a maximum payment of as much as 225 percent of his base salary of 1.06 million pounds subject to the bank meeting financial targets. The government injected about 20 billion pounds into Lloyds after it acquired HBOS Plc, Britain’s biggest mortgage lender.
Lloyds is scheduled to report full-year results on March 1 at 7 a.m. London time. The bank will post a net loss of 1.14 billion pounds compared with a loss of about 2.8 billion pounds for 2011, according to the median estimate of 13 analysts in a Bloomberg survey.
Royal Bank of Scotland Group Plc, the U.K.’s biggest government-owned bank, has said CEO Stephen Hester won’t take a bonus for 2012 after a computer failure left some of the lender’s 17 million customers unable to withdraw cash for days.
Sky News reported Horta-Osorio’s bonus earlier today.