Lloyds Cuts Executive Remuneration, Pension, Bonus Policies in Fairness Effort
February 20 2020 - 11:10AM
Dow Jones News
By Sabela Ojea
Lloyds Banking Group PLC announced Thursday that it has updated
its executive remuneration, pension and bonus policies to make it
fair, consistent and appropriately rewarding.
The U.K.'s largest retail bank said that this measure--taken by
the remuneration committee--would translate to a 8% cut in Chief
Executive Antonio Horta-Osorio's fixed pay, as well as a 29%
reduction to his maximum total remuneration opportunity.
"Remuneration should be designed in a manner that is clear for
all stakeholders and reflects their expectations," Chairman Lord
Blackwell said.
In terms of the pension scheme, the FTSE 100 lender said that
the maximum amount executive directors can receive has been reduced
to 15% of their salary.
Furthermore, the bank said the additional payment protection
insurance charges significantly impacted its statutory results and
has therefore decreased its total group performance share
factors--or bonus--by 33% to 310.1 million pounds ($402.1
million).
Lloyds reported Thursday a pretax profit of GBP1.45 billion for
the three months ended Dec. 31, 2019 compared with GBP1.03 billion
for the same period a year earlier.
For the whole year, the bank posted a pretax profit of GBP4.39
billion down from 5.96 billion in 2018--a profit drop that came
after booking GBP2.45 billion in PPI charges and a GBP1.4 billion
tax expense in the year, Lloyds said.
The bank's share buyback program remains suspended.
Shares at 1515 GMT were up 2.5% at 57.16 pence.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
February 20, 2020 10:55 ET (15:55 GMT)
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