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News

Lloyds Could Be Forced to Return More Bonuses

Having been forced to set aside more than £3.5bn to settle compensation claims relating to missold payment protection insurance, the Lloyds Banking Group could be set for yet more problems and could claim back some of the £375m paid out to the top bosses in bonus payments.

Chairman of the remuneration committee Anthony Watson told the Treasury select committee that “no decision has been made” although “we have to consider it.”

Back in February of this year, Lloyds announced that they would be taking back almost £1.5m in bonuses from the top execs, including the money paid out to former chief executive Eric Daniels after his role in the misselling of PPI.

The issue has raised its ugly head once again after a survey into executives pay was published showing that rewards for the very top bosses rose more than 12% on average in 2011 to an average of £4.8m each, according to the report by proxy voting agency Manifest and remuneration consultancy MM&K.

Daniel Stilitz the QC of think tank the High Pay Centre told MPs that “the general surging of payments to bankers has not stopped” and that “remuneration below board level remains opaque.”

George Mudie, the Labour MP asked the question why bankers need such high payments for doing a good job when “nurses and alike did good work for basic pay.”

There are still thousands of people out there who have been affected by the misselling of payment protection insurance who are yet to make a claim. If you’ve been affected, find out how to claim back PPI here.

Posted by Chris White on 15 Jun 2012

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