Lloyds cuts staff bonuses over PPI

Lloyds Banking Group is recouping part of the bonuses paid to executives following the £3.2bn mis-selling of payment protection insurance (PPI) fiasco.

Lloyds is to reclaim some of the money awarded in bonuses to senior staff in 2010. It spent £3.2bn compensating customers for mis-sold payment protection insurance (PPI) and is now stripping 13 directors who oversaw the scandal, including former CEO Eric Daniels, of a combined £2m.

Daniels will lose £580,000 of his £1.45m bonus. The cuts will affect the deferred element of the 2010 awards that haven't yet been paid out. It's the first time since "claw back" compensation rules came in in 2009 that a bank has retrospectively reduced pay.

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