Lloyds to reclaim bonuses?

20 May 2011

Lloyds Banking Group could be about to try and reclaim some of the bonuses that a number of top executives at the lender were handed, it has been suggested.

Speaking at the group's annual shareholder meeting, chairman Sir Win Bischoff revealed the institution is contemplating whether those responsible for the losses incurred through the payment protection insurance (PPI) debacle should have their pay affected as a result.

Lloyds took a hit worth around £3.2 billion ($5.2 billion) following the PPI incident.

It noted that no decision on the matter has been made as yet - but suggested bonus reductions in years to come could be on the cards.

Sir Win said: "The implications on compensation are being considered by the remuneration committee and will be determined by the board in due course."

Lloyds recently reported a net loss of £2.4 billion for the first quarter of 2011 - a sum considerably lower than the £169 million profit it recorded for the same period a year earlier.

By Tony Aynsley

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