Lloyds Banking Group CEO Gives Up Final-Salary Pension Amid Controversy
March 20 2019 - 6:53AM
Dow Jones News
By Adam Clark
Lloyds Banking Group PLC (LLOY.LN) Chief Executive Antonio
Horta-Osorio has given up a pension linked to his final salary
after criticism from employees.
The U.K. bank said in a statement on Wednesday that Mr.
Horta-Osorio agreed his pension benefit should be based on his
relevant salary in 2014 --the same year that he oversaw the end of
final-salary pensions for the rest of Lloyds' staff.
Lloyds said Mr. Horta-Osorio requested the review of the terms
of his pension arrangements, which had been based on the benefits
he forfeited on joining the bank from Banco Santander S.A. (SAN.MC)
in 2011.
The Times of London on Tuesday reported that a Lloyds staff
group had highlighted the CEO's pension arrangements in a letter to
the Investment Association, the asset-management industry body that
has campaigned against excessive executive pay.
The IA has also called for a gradual reduction in
employer-funded pension contributions for current executives to
bring them closer to those of their employees. Mr. Horta-Osorio had
already agreed to a reduction in his allowance to 33% of his salary
from 46%. Most Lloyds staff have contributions capped at 13%.
HSBC Holdings PLC (HSBA.LN) said last week that it would slash
its executives' pension allowances to 10% of their base salary from
a previous level of 30%.
Write to Adam Clark at adam.clark@dowjones.com;
@AdamDowJones
(END) Dow Jones Newswires
March 20, 2019 06:38 ET (10:38 GMT)
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