Mis-Selling PPI Scandal: Ex-Lloyds Boss Eric Daniels Faces Losing Bonus on Insurance Compensation
Mis-Selling PPI Scandal: Ex-Lloyds Boss Eric Daniels Faces Losing Bonus on Insurance CompensationReuters

Lloyds Banking Group is mulling over whether to claw back bonus payments from former chief executive Eric Daniels after the bank stumped up nearly £10bn to compensate customers that were mis-sold payment protection insurance.

According to a report in The Times, the bank's remuneration committee is going to decide over the next few days whether to pursue Daniels and confiscate, retroactively, some of his 2010 bonus, due to PPI mis-selling happening under his watch.

PPI was originally designed to provide loan repayment cover, should the customer fall ill, lose their job or have an accident.

However, millions of customers complained after saying that they never wanted or needed the policy in the first place.

It is also facing millions or billions of pounds in extra redress payments to victims of mis-sold interest rate hedging products.

Daniels became a senior adviser with the famous private equity firm, CVC Capital Partners, and investment banking group StormHarbour after he stepped down as Lloyds CEO in 2011

Meanwhile, Lloyds' current chief executive Antonio Horta-Osorio will receive a £1.7m (€2.1m, $2.8m) bonus award in deferred shares for five years, which is also subject to conditions.

His contract entitles him to a maximum annual award of 225% of his £1.061m basic salary.

Lloyds is 33% owned by the government and its largest investor is the UKFI.

Lloyds also boosted its annual banker bonus pool by 10% to £395m after the financial group more than doubled its underlying profit to £6.2bn.

Lloyds had not return with comment at the time of publication.