Lloyds Banking Group took the axe to generous final-salary pensions in the boardroom yesterday but insisted that there were no plans to end similar benefits for about 60,000 staff, reports The Times .
Directors of the state-controlled bank, including Eric Daniels, the chief executive, will give up their defined-benefit pensions from April 2012 and move to a defined-contribution pension scheme. "This change has no impact on the vast majority of our colleagues," Shane O'Riordain, Lloyds director of communications, said.
Although Lloyds and HBOS, its recent acquisition, have closed their final-salary schemes to new recruits, longer-serving staff are still members and continue to accrue benefits.
More than 28,000 HBOS staff are active members of its defined-benefits scheme, as are the majority of the 59,000 staff from the Lloyds TSB side of the combined bank.
The plan to continue the generous schemes below board level for the time being came as it emerged that the bank, newly strengthened with £17 billion of public money, has earmarked £550 million to plug yawning shortfalls in the Lloyds TSB pension schemes. Full story...
BANKERS HAVE BEEN ACCUSED of making an "astonishing mess" of the financial system, in a report by Treasury Select Committee, The Telegraph reports.
There had been a "comprehensive failure of the banking system at all levels", said chairman John McFall In the committee's second report on the banking crisis published on Friday.
He added that senior executives in banks, non-executive directors, governments and regulators were all partly to blame.
The MPs said it was "deplorable" that banks, which have been propped up with billions of pounds of taxpayers' money, are not extending new loans to customers. Full story...
THE EMBATTLED BANK OF AMERICA chief executive Ken Lewis was ousted as chairman of the bank's board in a knife-edge vote today as shareholders scored a dramatic victory in a protest sparked by the costly purchase of the Wall Street brokerage Merrill Lynch, according to The Guardian.
At a rowdy annual meeting attended by more than 2,000 people in Bank of America's hometown of Charlotte, North Carolina, investors re-elected Lewis and his 17 fellow directors to the board.
But in an embarrassing defeat for the bank's leadership, shareholders backed a resolution calling for a split in the roles of chairman and chief executive by a wafer-thin majority of 50.34% to 49.66%. Full story...IFAonline
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch
To drive progress