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February 20th, 2012 
FAKE NEWS for the Zionist agenda - Former chief executive and four other previous directors targeted
- Move will prompt calls for other banks to follow suit
By
Ruth Sunderland
Last updated at 9:52 AM on 20th February 2012
Clawback: The move is understood to come on the orders of Lloyds chief executive Antonio Horta Osorio (pictured)
Lloyds Banking Group is to be the first bank to strip executives of part of their bonuses since the start of the financial crisis.
The bailed-out bank is to take back a total of more than £1million from its former chief executive Eric Daniels and four other current and previous senior directors under new clawback provisions.
The move will prompt calls for other banks to follow suit.
It is understood to come on the orders of Lloyds chief executive Antonio Horta Osorio.
Earlier this year he volunteered to give up his bonus of up to £2.4 million because he had taken a leave of absence due to exhaustion and felt bosses’ rewards ought to reflect hardships suffered by customers during the downturn.
The clawbacks have been imposed due to Lloyds’ involvement in the payment protection insurance (PPI) mis-selling scandal.
Daniels is to lose £360,000 of his £1.45m bonus for last year. The 60 year old former chief left the bank in March 2011 but remained on the payroll until the following September receiving £100,000 a month, although he did no work for his erstwhile employer.
The PPI scandal was one of the biggest of its kind in recent years.
Customers were sold insurance policies when they took out loans that were meant to cover repayments if they fell sick or lost their job.
The products were extremely lucrative for the banks but often turned out to be of dubious value to consumers. Lloyds last year said it would have to write off £3.2 billion to cover the cost of redress.
PPI scandal: Lloyds last year said it would have to write off £3.2 billion to cover the cost of redress
Sacrifice: Eric Daniels (left) and Helen Weir (right) are among the executives targeted in the clawback
City watchdog the Financial Services Authority called on the banks to reflect the seriousness of the scandal in executive pay-packets. Horta Osorio was not at Lloyds at the time of the mis-selling.
The other bosses who face a clawback are departing finance chief Tim Tookey, who will sacrifice £235,000 of his £942,000 payout; Helen Weir, the former head of the retail bank, who will lose £218,000 from her bonus of £875,000 award; wholesale banking boss Truett Tate, who retires this month and will have £260,000 of his £1.05 million bonus clawed back and former head of risk Carol Sergeant. The pay and bonus of Ms Sergeant, who held a senior position at the Financial Services Authority prior to joining the bank is not disclosed as she was not a board director.
The bank is able to claw back the bonuses because they were awarded in shares to be released over three years so it will simply not pay out the full awards.
So far others have fought shy of clawbacks for fear disgruntled bosses may mount legal challenges.
Lloyds is expected to reveal losses of around £3.5 billion when it issues its full year results for 2011 later this week. Taxpayers own a 41 per cent stake following a £20bn government bailout.
Fellow state-backed bank Royal Bank of Scotland has set aside £850million to cover PPI claims. Its boss Stephen Hester succumbed to pressure to give up his £963,000 bonus after a public outcry, but there are now likely to be fresh demands for further clawbacks on previous bonus awards because of PPI.
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Why is it acceptable that bankers are getting bonuses at all ? Aren’t they already on a good wage ? I’m a lorry driver,- where is my bonus ?
– Cargo-Girl, Wales, 20/2/2012 09:41
You have no bonus – BECUASE YOU’RE A LORRY DRIVER! Get a better job if you want a bonus. I’m a receptionist i get a bonus. I wouldn’t work for a company who didn’t offer one. I’m all for them. I’m not rich by any means but i don’t begrudge those that are. And it gives me hope that once i’m qualified in what i want to do, i too shall be rich…
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I am sure there is a level of income after which every pound extra has less and less effect.You cant kid me that to pay a masive bonus to someone who is already earning £5oo,ooo wil make him work dramatically harder.
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It’s very simple..or should be. No bonus’s to be paid until the ALL the tax payers money has been paid back by the bank. after you have paid off your debt then your private again and can go back to the trough
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I can see no reason for bank bosses get bonuses, they are extremely well paid and they get a lot of other perks, so bonuses should be out of the question ever!
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glad someone in the banking industry has some shame!
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IT is obscene that the people who are getting large salary’s are also getting large Bonuses. The government instead of taxing the poor should tax Bonuses at 90%.
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It’s a step in the right direction and when the sky does not fall in at Lloyds then maybe other banks will look at their bonus systems, and if their CEOs don’t want to then maybe their corporate shareholders will.
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It may be a step in the right direction,but only a very little step,when will the banks wake up to the fact they get extremely good salaries,expenses,perks,they should not be paid any form of bonus.
If we read down the list of payback candidates they are all from failed sectors of the bank.No wonder the great British Public get really P……d of about payment for failure,and as for payments for not doing any work that is the ridiculous,they have over the top pension packages as well
Grumpy Old Git
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Next year they will double their bonuses.
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Why is it acceptable that bankers are getting bonuses at all ? Aren’t they already on a good wage ?
I’m a lorry driver,- where is my bonus ?
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