Giving the game away

16 March 2012 By George Hay Follow @gfhay

The UK bank has blocked payouts to former bosses, including ex-CEO Eric Daniels. Architects of the ill-fated HBOS deal might seem fair game. But Daniels hit targets on which awards were based, and current executives got paid. The lack of consistency undermines future pay policy.

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Lloyds Banking Group has blocked bonus payouts to its former Chief Executive Eric Daniels and three other former directors, the Financial Times reported on March 16.
Daniels had been set to receive 2.3 million Lloyds shares in recognition of meeting annual cost reduction targets by integrating the old Lloyds TSB with HBOS, acquired after the 2008 credit crunch. His colleagues Helen Weir, Archie Kane and Truett Tate had been due to get share awards of about 500,000 pounds each.
Despite blocking Daniels’ payout, Lloyds has paid HBOS integration bonuses to Mark Fisher, group operations director, and three other executives.
Wolfgang Berndt, a former head of Lloyds’ remuneration committee, stepped down in May 2010 after investors criticised the bank’s decision to award Daniels his full 2.3 million pound bonus for 2009, when Lloyds recorded a 6.3 billion pound pre-tax loss. Daniels waived the payout.

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