ABI slams Lloyds chief’s bonus
Share
The Association of British Insurers has called on Lloyds Banking Group shareholders to reject the bank’s pay plan after it offered chief executive Sir Eric Daniels a £2.3m bonus.
According to the Daily Telegraph, Daniels waived his right to take the bonus but the ABI is concerned that the bank’s remuneration committee judged it prudent to offer Daniels a bonus after the bank made a £6.3bn loss in 2009.
The ABI has issued an “amber alert” on the Lloyds remuneration report, which will be voted on at next month’s annual general meeting.
ABI director of investment affairs Peter Montagnon told the paper: “There is some residual concern amongst some shareholders in the way the remuneration committee made its decision on bonuses.
“We note that there is a new remuneration committee chairman and a commitment to maintain close dialogue, which is positive.”
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
Readers' comments (2)
Sutherlands Craigsbottom | 23 Apr 2010 11:20 am
When will this officious old boy network of bankers learn that people no longer have any tolerance for the Fat Cat buffoonery that continues to raise it’s head with these ridiculous pay rises for an entity that makes a huge loss.
Right now I would vote for anyone who promised to dethrone these self important leaches on society.
At least when they meet their maker they will be judged and found wanting…..or if you are not religious most of them will hopefully just be dead soon from gout and cirrhoses
Unsuitable or offensive? Report this comment
John Harding | 23 Apr 2010 11:29 am
ABI's position seems entirely reasonable. The bank overstretched itself and failed to undertake proper 'due diligence' in its takeover of HBoS. Taxpayer money had to be used to shore up the bank and it is now more than 40% owned by UK taxpayers. To even think of paying a bonus in such circumstances is ridiculous, especially so when Eric Daniels was instrumental in making all the decisions that led to this situation. But this is the culture, neither UKFI nor the FSA could call this into question without being totally hypocritical with regard to their own bonuses.
(Am assuming UKFI personnel are in line for bonuses in the same way as those at the FSA, just that we don't hear about them so much! I apologise if this is not so.)
Unsuitable or offensive? Report this comment