Lloyds Banking Group mulls bonus shake-up
Last year HSBC changed its rules to force senior staff to hold on to share-based bonuses until retirement, a model used at Goldman Sachs for partner-level bankers.
Under the Lloyds plan, new trigger points for payouts could be set, including one relating to the bank’s share price hitting the average price of 74p at which the government injected its rescue financing. Lloyds is trading at just over 40p.
The scrapping of annual bonuses and the 10-year timeframe for payouts, compared with the standard three years for typical LTIPs, was the most extreme of a range of options being discussed, they said.
Lloyds declined to comment on the details of its planned pay reforms, but told the paper: “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 forseeable future.”