Lloyds to claw back £2m bonuses

Updated: 
Eric DanielsLloyds Banking Group is to claw back bonuses worth around £2 million in the wake of the scandal over payment protection insurance (PPI), it has been reported.

Former chief executive Eric Daniels will lose up to £700,000 of his £1.45 million bonus for 2010, while three other current and former directors will each have to forgo up to £250,000.

A further six executives, below board level, will be stripped of around £100,000 each, the BBC added.

Amid pressure from politicians and the Financial Services Authority, it will be the first time a bank has used a claw-back option on executive pay packages since the financial crisis.


The impact of the mis-selling scandal, which involved the sale of insurance alongside loans to cover repayments if borrowers fell ill or lost their jobs, will be shown in full-year results from Lloyds on Friday.

The UK's biggest lender, which owns Halifax, Bank of Scotland and Cheltenham and Gloucester, has been forced to set aside £3.2 billion to cover compensation for customers who were mis-sold PPI.

Royal Bank of Scotland, which will announce figures on Thursday, has also been hit and will be under pressure to make similar claw-back measures.

It is not known whether Lloyds will announce its move with this week's results, when it is expected to post a loss of £3.5 billion, or wait until its annual report is published in March. The bank declined to comment.

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