Lloyds CEO Horta-Oso­rio's pay falls 24pc amid higher PPI charge

The Pak Banker - - COMPANIES/BOSS -

LON­DON: Lloyds Bank­ing Group Plc cut An­to­nio Horta-Oso­rio's pay 24 per­cent to 8.8 mil­lion pounds ($12.2 mil­lion) af­ter the len­der booked an­other 4 bil­lion pounds of charges for wrongly sold pay­ment pro­tec­tion in­sur­ance. The chief ex­ec­u­tive of­fi­cer's long-term stock in­cen­tive fell to 5.3 mil­lion pounds last year, from 7.4 mil­lion pounds in 2014, ac­cord­ing to the bank's an­nual pay re­port pub­lished Thurs­day. Cush­ion­ing the de­cline, the CEO re­ceived a 6 per­cent raise in his 2016 base salary to 1.125 mil­lion pounds, com­pared with an av­er­age em­ployee in­crease of 2 per­cent. Lloyds has now set aside more than 16 bil­lion pounds to com­pen­sate cus­tomers for wrongly sold PPI, more than dou­ble the amount of any other U.K. len­der. The scan­dal, now half a decade old, con­tin­ues to be­smirch Lloyds's rep­u­ta­tion as Chan­cel­lor Ge­orge Os­borne seeks to sell shares to re­turn the bailed-out len­der to full pri­vate own­er­ship. Still, the bank in­di­cated along­side its an­nual re­sults the lat­est PPI charge may be its last, help­ing drive up the shares the most since 2011. The bank also cre­ated 17 more mil­lion­aires among its staff, even as to­tal bonuses were cut. The pool of 354 mil­lion pounds was about 4 per­cent lower than 2014. It would have been 26 per­cent greater if not for re­duc­tions tied to the PPI charges. It was re­duced "re­flect­ing ad­di­tional con­duct-re­lated pro­vi­sions rel­e­vant to the year which im­pacted neg­a­tively on prof­itabil­ity and share­holder re­turns," Lloyds said. "As pre­vi­ously an­nounced, 30 mil­lion pounds was de­ducted to rec­og­nize the im­pact of fail­ing to de­liver the high­est lev­els of cus­tomer ser­vice in PPI com­plaint han­dling." The num­ber of se­nior bankers and "ma­te­rial risk tak­ers" that earned more than 1 mil­lion euros ($1.1 mil­lion) rose to 66 last year from 49 in 2014, ac­cord­ing to the re­port.

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