It’s bonus time for Horta-Osorio

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IOL pic jan27 lloyds london

Reuters

A man walks past the entrance to the head office of Lloyds Banking Group in London. File picture: Olivia Harris

London - Lloyds Banking Group's Chief Executive Officer Antonio Horta-Osorio could be awarded and would accept a bonus of up to two million pounds in coming weeks, Sky News reported on Tuesday, citing Whitehall sources.

Sky said the state-backed British lender and its biggest investor, UK Financial Investments (UKFI), were discussing the terms of the CEO's 2013 bonus, which would be linked to a long-awaited resumption of dividend payments or a further sale of taxpayer-owned shares.

Lloyds, which last paid a dividend in 2008 before it was rescued during the financial crisis, is 33-percent owned by the British taxpayer.

The bank said this week that it expected to apply to the regulator in the second half of the year to restart dividend payments.

Sources said the bonus - likely to be worth between 1.5 million pounds and 2 million pounds - would be awarded in shares and deferred for at least five years, the broadcaster reported on its website.

Lloyds declined to comment, while UKFI could not be reached outside of business hours.

Earlier on Tuesday, Martin Wheatley, CEO of the Financial Conduct Authority, told lawmakers that tougher guidelines on financial sector pay were under consideration.

When asked if senior managers at Lloyds would have their bonuses clipped following the bank's record 28 million pound fine in December, Wheatley said the “whole concept of clawback” was that people involved in bad decisions should suffer the consequences of their actions.

The news comes a day after Barclays PLC CEO Antony Jenkins waived his 2013 bonus, which could have been up to 2.7 million pounds. - Reuters


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