Bank to claw back up to £2m in bonus pay-outs


Lloyds Banking Group is taking back up to £2m in bonuses from about 10 current and former senior bankers over their role in the payment protection insurance (PPI) mis-selling scandal.

PPI mis-selling cost the bank £3.2bn pounds last year.

The bonus withdrawal will be the first time a British bank has used a claw-back option on executive pay packages since the financial crisis, the BBC has reported.

Former Lloyds chief executive Eric Daniels will lose up to £700,000 of his £1.45m bonus for 2010, while three other current and former directors will each have to forgo up to £250,000.

A further six executives, below board level, will be stripped of around £100,000 each, the BBC added.

In April 2011, the industry lost a High Court battle to stop customers demanding compensation. Lloyds announced weeks after the decision it was setting aside £3.2bn for likely payouts.