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
-
Water companies blocked from using customer money to pay “undeserved” bonusesThe regulator has blocked three water companies from using billpayer money to pay £1.5 million in exec bonuses
-
Will the Bitcoin price hit $100,000?With Bitcoin prices trading just below $100,000, we explore whether the cryptocurrency can hit the milestone.
