Banking giant Lloyds is to strip five current and former senior bankers of some £1m in bonuses over their role in the mis-selling of payment protection insurance (PPI), according to the Telegraph.
The PPI scandal cost the part state-owned bank £3.2bn in compensation payments last year. The bonus withdrawal will be the first time a British bank has exercised a "clawback" option on executive pay packages since the financial crisis, the Telegraph said. In April last year, the industry lost a case in the High Court to stop customers demanding compensation. Lloyds later announced its intention to set aside £3.2bn for likely payouts.