Sir Win Bischoff, chairman of the group, voiced his support for the financial institutionâs CEO bonus and the remuneration policies for senior executives during a shareholders meeting.
Mr Daniels was offered a full bonus of Â£2.3 million by the bank but waived the money due to increasing public anger over the size of banker pay cheques.
The bankâs chairman was quoted by the Press Association as saying: âThe 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 âappropriate financial recognitionâ for their work.
Other bankers at Lloyds accepted bonuses, which totalled Â£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