Page last updated at 14:09 GMT, Sunday, 28 March 2010 15:09 UK

Lloyds boss Eric Daniels gets bonus rise

Eric Daniels
Eric Daniels did not take up his 2.3m bonus this year

Lloyds Banking Group has announced plans to pay its chief executive, Eric Daniels, a bigger bonus.

The bank said it planned to give Mr Daniels up to £2.83m in shares as a long-term bonus - equivalent to 275% of his £1.03m salary.

That is up from the previous cap of 200% of his salary - an increase the bank says is necessary to keep its pay competitive.

The shares will be in addition to Mr Daniels' £2.3m annual bonus.

Earlier this year, the chief executive said he would not be taking his bonus for 2009, amid controversy over bankers' pay.

The new arrangements, announced in a report to the stock markets, mean Mr Daniels could see a total pay packet in excess of £6m.

But the share awards will depend on the long-term performance of Lloyds, including a rise in its share price above 114 pence.

That would also ensure a profit for taxpayers, who currently own 41% of the bank.

Lloyds shares closed at just over 64 pence on Friday.

The bank said the new incentives were set following consultation with UKFI - the body set up to manage taxpayer stakes in the bank.

The arrangements include deferring the payment of bonuses until 2012, with clauses allowing the bank to claw back payments.

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