Lloyds Banking Group PLC has no plans to overhaul its pay policy for senior staff in the foreseeable future, the part state-owned British bank said on Monday, countering a press report it might ditch annual bonuses for executives.
“We keep our remuneration plans under review at all times but have no current plans to change our structures and do not expect to do so in the foreseeable future,” a spokeswoman said.
The Financial Times had reported that Lloyds was examining whether to scrap annual bonuses for executives and extend longer-term incentives to up to 10 years.
Lloyds chief executive Antonio Horta-Osorio recently called for a radical change within the banking industry, saying it must break with the culture of the past in order to restore the trust of customers.
In a speech to the CBI Scotland Annual Dinner last month, Mr. Horta-Osorio said Lloyds was committed to ensuring pay is increasingly linked to the long-term performance of the bank.
Lloyds’ top-earning executive was paid £2.8-million ($4.5-million) in 2011 and Mr. Horta-Osorio could receive almost 10 million shares under this year’s incentive plan.