This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-17094182
The article has changed 6 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Lloyds takes back £2m of bonuses paid to executives | |
| (about 1 hour later) | |
| Lloyds Banking Group is taking back bonuses worth £2m from 10 executives, including the former chief executive Eric Daniels, the BBC has learned. | |
| Four of those affected were board directors. | Four of those affected were board directors. |
| Mr Daniels is expected to lose between 40% and 50% of a £1.45m bonus, or between £600,000 and £700,000. | Mr Daniels is expected to lose between 40% and 50% of a £1.45m bonus, or between £600,000 and £700,000. |
| BBC business editor Robert Peston says they are being penalised over their role in the mis-selling of payment protection insurance (PPI). | BBC business editor Robert Peston says they are being penalised over their role in the mis-selling of payment protection insurance (PPI). |
| This involved the sale of insurance that, in theory, covered repayments if borrowers were unable to continue repayments through illness or unemployment, but in many cases those taking out the policies would not have been eligible to claim on them. | This involved the sale of insurance that, in theory, covered repayments if borrowers were unable to continue repayments through illness or unemployment, but in many cases those taking out the policies would not have been eligible to claim on them. |
| Our business editor says three other board directors are expected to see about £250,000 of their bonus taken from them. | |
| About six other executives, below board level, would lose around £100,000 each. | About six other executives, below board level, would lose around £100,000 each. |
| This is the first time a British bank has taken back bonuses from executives, following a financial performance that was worse than expected. | |
| The return of some of the bonuses, which were demanded by regulators after the banking crisis of 2008, are being made after pressure from politicians and the Financial Services Authority. | |
| Results | Results |
| Lloyds Banking Group is the UK's biggest lender and owns the Halifax, the Bank of Scotland and the Cheltenham and Gloucester. | Lloyds Banking Group is the UK's biggest lender and owns the Halifax, the Bank of Scotland and the Cheltenham and Gloucester. |
| It has been forced to set aside £3.2bn to cover compensation for those customers who were mis-sold PPI. | It has been forced to set aside £3.2bn to cover compensation for those customers who were mis-sold PPI. |
| The bank will publish its results this Friday and is expected to announce a loss of about £3.5bn. | |
| The bank has not yet formally announced its plans for the return of some of the bonus money. | |
| Its current chief executive, Antonio Horta-Osorio, said in January he would not take an annual bonus for 2011. | Its current chief executive, Antonio Horta-Osorio, said in January he would not take an annual bonus for 2011. |
| Our business editor says the move may have a deterrent effect in future, making bankers more likely to consider the consequences when they launch new products or do assorted deals. | Our business editor says the move may have a deterrent effect in future, making bankers more likely to consider the consequences when they launch new products or do assorted deals. |