Pressure mounting on Lloyds boss to give up bonus after £4.3m fine

The Financial Services Authority yesterday fined the taxpayer-backed lender £4.3m for delays in paying out compensation to 140,000 customers mis-sold payment protection insurance.

It is another humiliation for the bank which, analysts believe, could see its PPI bill jump from the £5.3bn already set aside to £6.3bn.

Lloyds chief executive Antonio Horta-Osorio immediately came under pressure to waive his bonus for 2012, which could be as big as £5.3m on top of his £1.1m salary, the Daily Mail reports.

He is also due to be paid 1.7m shares in June this year, worth around £940,000 at last night's closing price of 55.26p, as part of the deal to hire him from rival Santander in early 2011.

Labour MP John Mann, a member of the influential Treasury Select Committee, said: ‘He should not be getting a bonus. This is a taxpayer-owned bank that he is running and has a poor performance. He should be paying money back not taking money out. This is a reward for incompetence and failure.'

 

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