Lloyds Paid 25 Employees More Than 1 Million Pounds in 2012Gavin Finch and Howard Mustoe
Lloyds Banking Group Plc, the U.K.’s second-largest government-owned lender, paid 25 employees more than 1 million pounds ($1.52 million) even after posting a third straight full-year loss.
Lloyds paid five bankers more than 2 million pounds, the London-based firm said in a statement today. Its top eight executives received 13.4 million pounds in total compensation, down from about 16.2 million pounds in 2011. Chief Executive Officer Antonio Horta-Osorio’s pay almost doubled to 3.38 million pounds last year, the bank said.
Horta-Osorio’s efforts to return the 39 percent U.K.-owned lender to profitability are being stymied by past regulatory missteps such as the improper selling of loan insurance. The firm has set aside 6.8 billion pounds in redress for payment protection insurance mis-selling and this month posted a net loss of 1.43 billion pounds for 2012.
Barclays Plc, the U.K.’s second-largest bank by assets, this month said it paid 428 bankers more than 1 million pounds, while HSBC Holdings Plc said it had 204 employers earning that amount and Royal Bank of Scotland Group Plc had 95.
Lloyds slipped 1.7 percent to 47.82 pence in London trading, valuing the bank at 33.7 billion pounds.
The government paid the equivalent of about 61 pence a share when it bailed out the lender following its acquisition of HBOS Plc in 2008, according to Lloyds. Horta-Osorio, who spurned a bonus for 2011, won’t receive a 1.49 billion-pound award for 2012 until the shares rise above 73.6 pence or the government has sold a third of its stake for more than the price it paid.
“There are 4,000 staff at Lloyds who got no pay increase at all and large numbers have endured four pay freezes in a row,” the Unite labor union said in a statement. “It is one rule for the millionaires and another for hard-up staff on the front line in branches and call centers.”
Lloyds said it would recoup some of the bonuses awarded to executives in 2010 for their involvement in the inappropriate sale of PPI. The clawbacks would be on an equivalent scale to those instituted last year when former CEO Eric Daniels lost 40 percent of his 1.45 million-pound bonus along with 12 other former executives who were penalized for the PPI scandal, the bank said.
The lender’s bonus pool shrank to 365 million pounds for 2012, from 375 million pounds a year earlier.
-- Editors: Jon Menon, Dylan Griffiths