We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedPeople Management

Lloyds CFO Tim Tookey faces bonus cut

New John Lewis FD also sees pay cut over payment protection insurance scandal

Article comments

The chief financial officer and former group executive director of retail of Lloyds Bank will both lose 25 percent of their bonus awards, the bank confirmed on Monday.

CFO Tim Tookey, who is set to join insurance company Friends Life this month, and Helen Weir – who has taken over as finance director at John Lewis – are among the 13 current and former executives to have their 2010 bonuses clawed back. Former chief executive Eric Daniels will see his bonus reduced by 40 percent.

The bank became the first to clawback bonuses since the financial crisis began in 2008 because of the mis-selling of payment protection insurance, which cost the bank up to £3.2 billion in compensation. The bonuses were due to be paid this month.

A statement by Lloyds said the bonus pools would have been lower and individual bonus awards would have been lower had the outcome of the Judicial Review in April 2011 been known. The bonus pool for 2011 would also be affected by the ruling, it added.

"The board wishes to emphasise that its decision is based entirely on the principle of 'accountability' and in no way on culpability or wrong-doing by the individuals concerned," the statement said.

PPI was often sold alongside loans to cover repayments if borrowers fell ill or lost their jobs. The product was labelled as worthless insurance for many customers by a consumer group in 2008, which followed compensation claims by buyers.

Photo credit: Reuters


Recommended Articles


Lloyds CFO Tim Tookey faces bonus cut
People Management

Is the CFO still the sole sacrificial lamb when a company struggles?

Is the CFO still the sole sacrificial lamb when a company struggles?

Tesco's announcement today that boss Philip Clarke is to leave proves that's no longer the casemore ..

Job cuts cool Microsoft staff view of CEO Satya Nadella

Percentage of former and current workers who approve of CEO fall 24%, while those who disapprove quadruplesmore ..

Debenhams poaches Mothercare CFO

Matt Smith was acting CEO after Simon Calver abruptly left the mother and babycare groupmore ..

Premier Oil appoints new CFO

Former CFO Tony Durrant became the oil group's CEO last monthmore ..

Ten tactics to unleash the potential of Generation Y in finance

Most CFOs are Baby Boomers or Generation X-ers – the difference in mindset is hugemore ..

What's the role of the finance chief in a takeover bid?

With Pfizer's possible takeover of Astrazeneca in the spotlight we take a look at how pivotal the CFO is in such a dealmore ..

Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..


* *