Lloyds boss Horta-Osorio gives up final salary pension perk

Lloyds boss Horta-Osorio gives up final salary pension perk
Antonio Horta-Osorio was the only employee entitled to such a pension, having overseen the ending of final salary schemes in 2014.

Staff had criticised his arrangement, and there was talk it could overshadow Lloyds annual shareholder meeting.

But the banking giant insisted it was entirely Mr Horta-Osorio s decision.

The chief executive s own arrangement dates back to a pension he forfeited when he took over at the banking giant after leaving Santander in 2011.

The Investment Association, a big city trade body for UK investors, has been pressing companies to crack down on excessive executive pensions, arguing that they are against the interests of shareholders and staff.

Lloyds said in a statement on Tuesday that the change is "in line with the Investment Association guidelines for a gradual reduction in pension allowances for current executives".

The change takes place immediately, Lloyds said.

Banking rival HSBC has already changed the pension terms for its executives.

A Lloyds staff group called Affinity had written to the Investment Association saying that Mr Horta-Osorio s pension arrangements had been "of massive discontent".

It was expected that the association would review the scheme ahead of Lloyds annual meeting on 16 May, when shareholders have the opportunity to publicly comment on pension arrangements.

Lloyds staff who are members of the defined benefit scheme had their pensionable pay capped in 2014.

The bank said that at that time Mr Horta-Osorio had a capped base salary of £1.22m, which was used to determine his benefits.
News Topics :
The taxpayer will make a profit of about £500m on the £20.3bn bailout of Lloyds Bank Group during the financial crisis, says the chief executive. Antonio Horta Osorio told shareholders that...
Of the 49 banks earmarked for closure eight belong to the Halifax network and the other 42 are Lloyds branches. After those cuts the group will have 1, 750 branches in...
It said pre tax profits doubled from a year ago to £1.3bn in the first quarter, although last year s figure included a hefty one off cost. Lloyds boss Antonio Horta Osorio said...
MPs are pressing the Treasury Select Committee to open an immediate inquiry into the alleged forgery of signatures in bank court documents. They also want Lloyds chief executive Antonio Horta Osorio...
Noel Edmonds claims Lloyds Banking Group will have to pay out significantly more than the £100m set aside as compensation for victims of a major HBOS fraud. The TV star...