Outrage as former Lloyds boss demands £500k bonus

THE shamed former Lloyds boss who led a disastrous takeover of rival HBOS is demanding £500,000 in unpaid bonuses.

Eric Daniels was in charge of the lender from 2003 to 2011, presiding over the £12bn acquisition of its tainted competitor during the financial crisis.

That decision almost destroyed Lloyds and forced it into a humiliating £20.5bn bailout.

Daniels, 66, was also in charge at the height of the ppi misselling scandal, a disaster which has cost the bank £18.1bn.

He and other executives have already had millions of pounds of bonuses taken away from them because of the debacle.

But now Daniels and former wholesale banking head Truett Tate are reportedly challenging a decision not to pay them part of a bonus due in 2012 – the year after the former chief executive left. They are said to have filed High court claims against Lloyds this month, with Daniels reportedly demanding around £500,000. The banker left with a £5m pension pot and has remained prominent in city circles, dispensing advice to top clients and serving as a nonexecutive director at online lender Funding circle.

He has also been working for Mayfair investment bank Stormharbour and private equity giant CVC capital partners.

critics slammed Daniels last night, accusing him of ignoring the damage he had caused to taxpayers, trust in banking and the wider economy.

Labour Mp John Mann said: ‘Eric Daniels was rightly criticised by the [Treasury Select] committee back in 2010 but still left with a massive pension pot.

‘To try and claw back even more money adds insult to injury.’

it is not known how much cash is being sought be Tate, who quit Lloyds a year after Daniels did and joined Australian finance firm ANZ.

A Lloyds spokesman said: ‘As this matter is a live legal issue, it would be inappropriate to comment.’

Daniels could not be reached for comment.