Lloyds chief Antonio Horta-Osorio gives up £2.4m bonus
Lloyds Banking Group chief executive Antonio Horta-Osorio has declined to take an annual bonus for the last year, saying his recent absence and “the tough financial circumstances” facing many Britons made it inappropriate. Mr Horta-Osorio returned to work this week after nearly three months off due to a stress-related sleeping disorder and could have potentially received an annual bonus for 2011 worth £2.39m on top of his £1.06m salary.
Despite turning down his annual bonus, Mr Horta-Osorio is still eligible for a share grant for the last 12 months under a long-term incentive plan worth as much as £4.46m.
In declining his annual bonus, the Portuguese banker admitted his recent leave of absence had had “an impact both inside and outside the bank including for shareholders” and said he had told the Lloyds board he did not wish to be considered for the payout.
“As chief executive, I believe my bonus entitlement should reflect the performance of the group but also the tough financial circumstances that many people are facing,” said Mr Horta-Osorio.
Sir Win Bischoff, chairman of Lloyds, said the bank’s board had accepted the Mr Horta-Osorio’s request.
“Under António's leadership, the bank made significant progress last year in its transformation against a very difficult economic backdrop. However, given the economic circumstances, the financial challenges that many people are facing and his recent leave of absence, António felt it appropriate not to be considered for any award he might receive under the Group’s annual bonus scheme for 2011," he said.
Mr Horta-Osorio’s decision will put pressure on Britain’s other major banks to potentially scale back the annual performance awards they make to their own chief executives.
Royal Bank of Scotland will consider in the next weeks whether to grant its chief executive Stephen Hester his annual bonus for 2011, which could be worth about £1.3m based on the state-backed lender’s current share price.
David Cameron has said he wants to clamp down on “excessive” executive pay and bankers at taxpayer-backed banks like Lloyds and RBS are likely to be among the main targets of the drive.
On Wednesday, George Osborne, the Chancellor, said he would be monitoring closely how much RBS pays in bonuses to its investment bankers.
Source: Lloyds chief Antonio Horta-Osorio gives up £2.4m bonus - Telegraph
Lloyds Banking Group chief executive Antonio Horta-Osorio has declined to take an annual bonus for the last year, saying his recent absence and “the tough financial circumstances” facing many Britons made it inappropriate. Mr Horta-Osorio returned to work this week after nearly three months off due to a stress-related sleeping disorder and could have potentially received an annual bonus for 2011 worth £2.39m on top of his £1.06m salary.
Despite turning down his annual bonus, Mr Horta-Osorio is still eligible for a share grant for the last 12 months under a long-term incentive plan worth as much as £4.46m.
In declining his annual bonus, the Portuguese banker admitted his recent leave of absence had had “an impact both inside and outside the bank including for shareholders” and said he had told the Lloyds board he did not wish to be considered for the payout.
“As chief executive, I believe my bonus entitlement should reflect the performance of the group but also the tough financial circumstances that many people are facing,” said Mr Horta-Osorio.
Sir Win Bischoff, chairman of Lloyds, said the bank’s board had accepted the Mr Horta-Osorio’s request.
“Under António's leadership, the bank made significant progress last year in its transformation against a very difficult economic backdrop. However, given the economic circumstances, the financial challenges that many people are facing and his recent leave of absence, António felt it appropriate not to be considered for any award he might receive under the Group’s annual bonus scheme for 2011," he said.
Mr Horta-Osorio’s decision will put pressure on Britain’s other major banks to potentially scale back the annual performance awards they make to their own chief executives.
Royal Bank of Scotland will consider in the next weeks whether to grant its chief executive Stephen Hester his annual bonus for 2011, which could be worth about £1.3m based on the state-backed lender’s current share price.
David Cameron has said he wants to clamp down on “excessive” executive pay and bankers at taxpayer-backed banks like Lloyds and RBS are likely to be among the main targets of the drive.
On Wednesday, George Osborne, the Chancellor, said he would be monitoring closely how much RBS pays in bonuses to its investment bankers.
Source: Lloyds chief Antonio Horta-Osorio gives up £2.4m bonus - Telegraph
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