Some present and past executives of part-nationalised Lloyds Banking Group stand to have some of their past bonuses taken away as the bank tries to clean up its image and finances, news reports said today.
The Daily Telegraph newspaper said more than £1m sterling might be clawed back. Former chief executive Eric Daniels could lose at least £360,000, or a quarter of his bonus of £1.45m for 2010, the newspaper said.
The BBC said three other current and former directors would lose up to £250,000 while six other executives each stand to lose about £100,000.
Lloyds Banking Group, which reports full-year results on Friday, said it was not commenting on the reports. The bank has been under pressure to cut costs and improve its image after it was ordered, along with several other British lenders, to refund customers for payment protection insurance.
A court rejected bankers' claims that the rules on the insurance should not be applied retrospectively.
Lloyds has set aside £3.2 billion to reimburse buyers of the policies, by far the biggest provision by any British bank. The financial crisis has seen political and public anger focus on bonuses, particularly at Lloyds, where taxpayers took a 41% stake to save the company, and Royal Bank of Scotland where the public stake is twice as large.
RBS chief executive Stephen Hester bowed to pressure and refused his 2011 share bonus worth £963,000. Lloyds Chief Executive Antonio Horta-Osorio has already said he will not take a bonus for the year.
Barclays, which reported results on February 10, said it was cutting its bonus pool by 25% after its net profit for 2011 fell by 15% to £3 billion.
