Lloyds Bank has exercised an option to take back a part of the large bonus packages awarded to senior directors during 2010 and has warned them they may get smaller bonuses for 2011.
A report in the Guardian speculates that 10 former and serving senior executives will be asked to return up to half their 2010 bonuses for 2010.
Eric Daniels, Lloyds' former chief executive, will see £360,000 clawed back from his 2010 bonus. Other executives include Tim Tookey, outgoing finance director, (who will lose £235,000); Truett Tate, the former head of the retail bank division (£260,000); and Carol Sergeant, former head of risk (£100,000).
It is the first time a high street bank has exercised the clawback option.
The Telegraph said that Lloyds, which is 41 percent-owned by the taxpayers, was expected to announce pre-tax losses of £4bn for 2011. It made a profit of £281m in 2010. The loss was driven almost entirely by a hit of £3.2bn incurred in the Payment Protection Insurance mis-selling scandal.