Former Lloyds boss Eric Daniels set to lose £1.45m bonus after lender's bill for mis-selling PPI spirals
Loser: Eric Daniels ran Lloyds TSB and then Lloyds Banking Group from 2003 to 2011 at the height of the mis-selling scandal
Former Lloyds boss Eric Daniels looks set to lose every penny of his £1.45million bonus after the lender’s bill for mis-selling PPI spiralled to almost £10bn last year.
Lloyds is already thought to have clawed back 80 per cent of Daniels’ 2010 annual bonus of £1.16million over the scandal.
But over the next few days the remuneration committee will decide what happens to the remainder of the deferred shares bonus – thought to now be worth an estimated £370,000 – which is due to be triggered next month.
Insiders believe that the committee is likely to recoup all of the money.
Daniels ran Lloyds TSB and then Lloyds Banking Group from 2003 to 2011 at the height of the mis-selling scandal.
The lender is still reeling from the fallout, setting aside another £3billion last year to compensate customers.
This dragged it down to a small pre-tax profit of £415million.
Four other former board members, including corporate banking chief Truett Tate and retail boss Helen Weir, are also likely to be targeted.
The other two are former finance chief Tim Tookey and Archie Kane, who ran Scottish Widows, Lloyds’ insurance arm.
Lloyds (down 0.87p to 80.45p) has already clawed back half their bonuses from 2010, leaving them an estimated £1.8million out of pocket in total.
The final instalment of a third of their bonus is due to pay out in March.
Deborah Hargreaves from the High Pay Centre said: ‘Given the mis-selling culture instilled by Eric Daniels there is no way he should get a bonus.’
Most watched Money videos
- Take a look inside the classic Ford Sierra Cosworth RS500 car
- The new Aston Martin DBS Superleggera makes its debut
- Martin Lewis breaks down for couples how the marriage tax break works
- Pension guide specialists help people to understand their options
- Investing Show: How to find the best companies to invest in
- The Pru (Prudential) literally put an elephant in the room in ad.
- Hargreaves Lansdown's daily market update from this morning
- Land Rover creates one-of-a-kind defender for milestone
- 'No one's expecting house prices to drop dramatically again'
- Animation of Scotland's currency options after a yes vote
- Phil Spencer talks about the new Nest Learning Thermostat
- How the summer Budget affects tax, pensions and wages
- TRADER TIPS: City insiders say buy pharmaceutical giant...
- More than 4,000 jobs to be saved at Port Talbot as steel...
- Clash of the titans at warring Stobart: City bigwig joins...
- Trustees of Premier Foods’ pension scheme accuse activist...
- FTSE LIVE: Weekend trade threats send London market...
- Tesco joins forces with French supermarket giant...
- VAT calculator
- My wife never paid any National Insurance contributions,...
- Tenants in common
- Is buying a title for £195 ever worth it? I'm Lord Toby -...
- Am I allowed to give my children £10,000 in cash for...
- Beware insurer tricks on car write-offs
- 'I flew to Hungary to have my teeth fixed.'
- Have I found a 2p coin worth £700
- Can you change a name on a plane ticket?
- Find out how much different mortgage lenders will let you...
- Goodbye to Greensleeves? Ice cream van fleet launches app...
- Best paid UK jobs revealed: Compare your pay to the...