Bloomberg News

Lloyds Pays CEO Horta-Osorio 1.97 Million Pounds for 2011

March 15, 2012

Lloyds Banking Group Plc (LLOY), Britain’s largest mortgage lender, said Chief Executive Officer Antonio Horta-Osorio received total pay of 1.97 million pounds ($3.1 million) for eight months of work in 2011.

The CEO, who joined the company in March 2011, got 1.77 million pounds in salary, pension and benefits and 201,000 pounds in share options, which were sold on March 30, Lloyds said in its annual report today.

“There has been considerable external focus and scrutiny of executive remuneration in the past 12 months,” Anthony Watson, chairman of the lender’s compensation committee, said in the report. “We have worked as a committee to ensure that we motivate, incentivize and retain our talent while continuing to be mindful both of the economic outlook and the views of our numerous stakeholders.”

In January, Horta-Osorio said he was turning down his 2011 bonus to reflect the London-based bank’s performance and his nine-week absence last year for exhaustion. Lloyds, which is 41 percent government owned, awarded its top eight employees 16.2 million pounds, the bank said on March 10.

Horta-Osorio may also receive 5.71 million shares in exchange for stock promised in a performance plan granted by his former employer, Banco Santander SA (SAN), and 7.15 million shares from a Lloyds long-term incentive plan. Those two plans could be valued at as much as 4.68 million pounds at today’s share price. Lloyds rose 0.925 pence, or 2.6 percent, to 36.38 pence at 4:07 p.m. in London trading today.

Salary Frozen

Barclays Plc, Britain’s third-largest bank, paid CEO Robert Diamond 6.3 million pounds in salary, bonuses and stock last year, down from 9 million pounds the previous year. Barclays also made a 5.75 million-pound so-called tax equalization payment on Diamond’s behalf to tax authorities after he relocated to the U.K. from the U.S. HSBC Holdings Plc CEO Stuart Gulliver was paid 7.16 million pounds.

Lloyds posted a wider-than-estimated full-year loss for 2011 on a weaker U.K. economy and said income will drop in 2012. The net loss widened to 2.8 billion pounds from 320 million pounds in 2010, after the bank compensated customers mis-sold loan insurance, it said last month.

The lender has been named in private lawsuits in the U.S. relating to how various banks set the London interbank offered rate, the lender said.

“The group has received requests from some government agencies for information and is co-operating with their investigations,” Lloyds said in the report.

-- Editors: Jon Menon, Steve Bailey

To contact the reporters on this story: Howard Mustoe in London at hmustoe@bloomberg.net. Gavin Finch in London at gfinch@bloomberg.net;

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


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