Lloyds Banking Group Plc (LLOY), the 41 percent government-owned bank, will pay new Finance Director George Culmer as much as 5.9 million pounds ($9.4 million) in pay, bonuses and compensation for awards lost from his job at RSA Insurance Group Plc. (RSA)
Culmer, who joins the London-based bank from RSA on May 16, will receive a 2012 salary of 720,000 pounds, a discretionary annual bonus of 200 percent of salary and a long-term share performance-based award worth as much as 225 percent of salary, Lloyds said in a statement.
He’ll also get a pension allowance worth 25 percent of his salary and 1.9 million pounds of shares in Lloyds for bonuses forfeited as a result of leaving RSA, which will become available in 2013 and 2014, the company said.
Prime Minister David Cameron in January urged banks to show “proper regard” in limiting bonuses and demonstrate how pay is related to performance. Culmer replaces Tim Tookey at the bank that received a bailout of more than 20 billion pounds during the financial crisis.
Lloyds said future awards are based on “stretching performance measures.”
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