Lloyds boss called before MPs over pension payments
The boss of banking giant Lloyds has been called before MPs to defend the bank’s executive pension policies.
Chief executive Antonio Horta-Osorio has been invited by the work and pensions committee to give evidence regarding its pay policies.
Mr Horta-Osorio and remuneration chair Stuart Sinclair have been asked to speak before the committee, amid criticism over the size of its executive pension payments.
Lloyds came under fire after it was revealed that Mr Horta-Osorio’s pay included a pension contribution of 46%, compared to a 13% maximum for other employees.
In February, he voluntarily reduced his pension contribution to 33%.
The bank’s boss has also faced staunch criticism after receiving an annual pay packet of £6.27 million last year.
A Lloyds spokeswoman said: “We have received the letter and will respond in due course.”
Last week, Frank Field, chairman of the parliamentary committee, accused Lloyds of showing “feverish desperation and boundless greed” over the pay issue.
However, the bank ultimately avoided a shareholder revolt with only around 8% of investors voting against the bank’s pay proposals at its annual shareholder meeting last week.
Lloyds saw 91.95% of votes made in favour of its overall pay plans at the AGM, which marked an improvement on last year’s result when a fifth of shareholders voted against its remuneration report.
At the meeting, chairman Lord Blackwell defended the chief executives pay deal. He said the chief executive and other directors “earned through their performance the rewards that they are entitled to”.
He added: “Let me be clear, our view is we should and need to pay for performance.
“Not many people would do the arduous hours and arduous tasks they do for free.”
Last week, Rachel Reeves, chair of the business, energy and industrial strategy committee, said: “The pension for the Lloyds chief executive is only the latest example of a damaging narrative for UK business – there being one rule for the bosses, another for the workers.”