Insiders: Lloyds considering scrapping annual bonuses

22 October 2012

Annual bonuses may be a thing of the past for senior professionals working for Lloyds Banking Group, it has emerged.

The major UK financier is currently in the process of examining whether or not to scrap the concept of rewarding members of staff with a yearly bonus in favour of offering longer-term incentive packages over timeframes as large as ten years.

People with knowledge of the proposed pay overhaul have told the Financial Times that this idea has been put forward to investors as the bank attempts to provide evidence of its commitment to being more responsible with regard to remuneration.

Furthermore, it is hoped the changes would prevent Lloyds from becoming embroiled in a dispute with shareholders over its wage policies, as has occurred at fellow financiers such as Barclays and Credit Suisse in the recent past.

One of the individuals told the news source this alteration is a "good idea", adding: "Aligning bankers' pay with the long-term interests of shareholders would be welcome."

By Claire Archer

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