Lloyds Banking Group defends remuneration policy

7 May 2010

The board at Lloyds Banking Group has defended its decision to pay chief executive officer Eric Daniels a bonus for 2009.

Sir Win Bischoff, chairman of the group, voiced his support for the financial institution’s CEO bonus and the remuneration policies for senior executives during a shareholders meeting.

Mr Daniels was offered a full bonus of £2.3 million by the bank but waived the money due to increasing public anger over the size of banker pay cheques.

The bank’s chairman was quoted by the Press Association as saying: “The board, on the recommendation of the remuneration committee, believed that he [Eric Daniels] merited a bonus because of his significant personal contribution and the group's overall performance, albeit loss-making, in 2009."

He added that it was correct that senior staff receive “appropriate financial recognition” for their work.

Other bankers at Lloyds accepted bonuses, which totalled £4 million.

Wolfgang Berndt, chairman of the remuneration committee at Lloyds, tendered his resignation after agreeing to the bonus for the CEO.

Lloyds Banking Group is 41 per cent owned by the taxpayer.

By Jim Ottewill

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