Five directors of Lloyds Bank, including the previous Chief Executive, will be forced to pay back some of their 2010 bonus, reports the Telegraph.
Lloyds has had to set aside £3.2bn to cover claims arising from the mis-selling of payment protection insurance (PPI), it's those losses which have prompted the so called "claw back" exercise.
Lloyds is thought to be the first British bank to exercise a claw back clause and does so as bankers' pay comes under intense scrutiny following the financial crisis of 2008.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The Telegraph claims the total sum that will be handed back amounts to £1m although the BBC is reporting the actual figure to be nearer £2m.
The papers claims the directors concerned are "furious" at having to give the money back, arguing they acted within the law as it stood at the time that PPI was sold.
BS
-
Wage growth in UK jumps ahead of inflationLatest job market data from the ONS shows that wages grew faster than inflation from September to November, but also reveal a worrying rise in unemployment rates
-
Transformed companies displaying momentum and top-quality growthAlex Savvides, manager of Jupiter UK Dynamic Equity Fund, highlights three companies as he tells us where he'd put his money
