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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