New Model Adviser is for professional financial planners.

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.
6810.73 6780.9 0.44% 10:18

Lloyds extends bonus clawback as PPI payments rise

Lloyds extends bonus clawback as PPI payments rise

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.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.