Lloyds CFO Tim Tookey faces bonus cut
New John Lewis FD also sees pay cut over payment protection insurance scandal
By Jaimie Kaffash | CFO UK | Published 17:44, 20 February 12
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
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