Lloyds Banking Group to claw back executive bonuses

The banking firm will be clawing back bonuses worth £2 million from four board directors and six other executives.

According to the BBC, the former chief executive Eric Daniels will lose between £600,000 and £700,000, as the bank prepares to take between 40% and 50% of a £1.45 million bonus.

Three other board directors are expected to lose around £250,000, while six executives that don’t sit on the board will have £100,000 each clawed back.

Executives at the bank are being penalised for their role in the mis-selling of payment protection insurance (PPI), after the bank was forced to set aside £3.2 billion for customers that were mis-sold.

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Clawback arrangements were introduced in 2008, following pressure from politicians and the Financial Services Authority (FSA). This is the first time that a British bank has clawed back bonuses from executives.

The bank’s current chief executive Antonio Horta-Osorio turned down his bonus for last year.