Lloyds Cuts Executive Remuneration, Pension, Bonus Policies in Fairness Effort

Date : 02/20/2020 @ 4:10PM
Source : Dow Jones News
Stock : Lloyds Banking Group Plc (LYG)
Quote : 1.29  -0.08 (-5.84%) @ 9:38PM
After Hours
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Last $ 1.30 ▲ 0.01 (0.78%)

Lloyds Cuts Executive Remuneration, Pension, Bonus Policies in Fairness Effort

Lloyds Banking (NYSE:LYG)
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By Sabela Ojea

 

Lloyds Banking Group PLC announced Thursday that it has updated its executive remuneration, pension and bonus policies to make it fair, consistent and appropriately rewarding.

The U.K.'s largest retail bank said that this measure--taken by the remuneration committee--would translate to a 8% cut in Chief Executive Antonio Horta-Osorio's fixed pay, as well as a 29% reduction to his maximum total remuneration opportunity.

"Remuneration should be designed in a manner that is clear for all stakeholders and reflects their expectations," Chairman Lord Blackwell said.

In terms of the pension scheme, the FTSE 100 lender said that the maximum amount executive directors can receive has been reduced to 15% of their salary.

Furthermore, the bank said the additional payment protection insurance charges significantly impacted its statutory results and has therefore decreased its total group performance share factors--or bonus--by 33% to 310.1 million pounds ($402.1 million).

Lloyds reported Thursday a pretax profit of GBP1.45 billion for the three months ended Dec. 31, 2019 compared with GBP1.03 billion for the same period a year earlier.

For the whole year, the bank posted a pretax profit of GBP4.39 billion down from 5.96 billion in 2018--a profit drop that came after booking GBP2.45 billion in PPI charges and a GBP1.4 billion tax expense in the year, Lloyds said.

The bank's share buyback program remains suspended.

Shares at 1515 GMT were up 2.5% at 57.16 pence.

 

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

 

(END) Dow Jones Newswires

February 20, 2020 10:55 ET (15:55 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.

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