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Lloyds extends bonus clawback as PPI payments rise
by Daniel Grote on Feb 25, 2013 at 08:01
Lloyds Banking Group is extending its clawback on 2010 bonus payments as the costs of compensating for mis-selling of payment protection insurance continues to rise.
The Sunday Telegraph has reported the bank is to reduce the bonuses of 13 former directors and managers for a second time.
Under the clawback, former chief executive Eric Daniels (pictured) is set to see his £1.45 million bonus cut by a further 30%, after a 40% cut a year ago.
The 2012 clawback had been based on £3.2 billion of PPI mis-selling provisions made in 2011, while this round of cuts is based on the further £2 billion provision announced last year.
A Lloyds spokesman told the paper: ‘The board has the discretion to review all awards before they vest to ensure they remain appropriate and therefore, where relevant, can consider adjustments to deferred bonuses.’
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