Lloyds Banking Group Chief Executive Antonio Horta-Osorio has waived his bonus for 2011 after taking two months off to recover from fatigue. He said his decision reflected a poor performance by the bank, tough times for its customers as well as the effects of his absence.
The bonus could have been worth 2.4 million pounds ($3.7 million) for Horta-Osorio, who will still receive basic pay of 1.1 million and may get 4.5 million pounds in a long-term plan due to be paid in 2014. "My bonus entitlement should reflect the performance of the group but also the tough financial circumstances that many people are facing," he said on Friday.
"I also acknowledge my leave of absence has had an impact both inside and outside the bank, including for shareholders." The 47-year-old Portuguese shocked investors in November when he temporarily stepped down, suffering from fatigue. He returned this week, xxxx.
Bankers' pay, especially bonuses, has been politically contentious since the government spent 66 billion pounds bailing out Lloyds and Royal Bank of Scotland in 2008. UK Prime Minister David Cameron wants to curb executive pay by making shareholder votes on remuneration packages binding. Horta-Osorio's move could put pressure on other European bank executives to waive their bonuses after a torrid year for shareholders and more job cuts. In Britain, an insurance mis-selling scandal affected millions of customers.
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