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Lloyds boss in line for £2.4 million bonus
by Dylan Lobo on Oct 28, 2013 at 08:01
Lloyds chief executive Antonio Horta-Osorio is set to receive a £2.4 million bonus, according to Sky News.
According to the news broadcaster, Horta-Osorio (pictured) will be awarded more than three million shares in the state-owned lender next month if its share price remain above a certain level for the next three weeks.
Shares in the bank closed at 80.37p last Friday, above the important 73.6p level which was the average price the government paid for shares during its bailout in 2008.
More detail of the bonus could be revealed in the bank’s third quarter numbers, scheduled for release on 29 October.
The bonus is seen as a reward for Horta-Osorio for overseeing the recovery in the bank.
The government felt increasingly confident the bank would soon be able to stand on its own legs as it sold a 6% stake in September, reducing its total holding to 32.8%.
Lloyds is currently locked in talks with Aberdeen Asset Management over a sale of its funds business, Scottish Widows Investment Partnership, which is valued at between £400 and £500 million.
The sale of the business will further boost the bank’s capital standing and increase the prospect of a resumption of the dividend, which have been suspended since the height of the financial crisis.
While Investec Securities is expecting a 1p dividend next February, it downgraded the bank from buy to hold on the basis that much of the good news is priced into the stock price.
'We remain constructive on the outlook, but would look for a better entry level to buy back in. In the interim, we prefer Barclays (buy) and Standard Chartered (buy),' Investec analyst Ian Gordon said in a note to clients.
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