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Lloyds shareholders approve CEO pay packet

Lloyds shareholders approve CEO pay packet

(19 May 2015 – United Kingdom) Shareholders agreed on a £11.5 million (A$22.55 million) pay packed for Lloyds Banking Group chief executive António Horta-Osório on 14 May, despite concern over the Payment Protection Insurance (PPI) scandal.

The PPI scandal recently cost Lloyds £12 billion, but despite this fewer than 3 percent of investors voted against the cash-and-shares deal for Horta- Osório.

The deal includes a £7.5 million share award handed to Horta- Osório three years ago, the same year Lloyds was fined £226 million for rigging Libor.

The British Government’s share in Lloyds fell to below below 20 percent, down from 43 percent following the 2008 bailout.

UK Financial Investments (UKFI), which manages the taxpayers’ stake in the bank voted in favour of the remuneration report.

“Following a process of thorough engagement with the Lloyds remuneration committee, UKFI believes the committee has exercised reasonable judgement in relation to their approach to directors’ remuneration, particularly in the context of performance over the year,” it said.

Lord Blackwell, the bank’s chairman, was reportedly asked if the government would be able to sell of the rest of its stake next year.

“It’s possible and would be very desirable. Whether the government can achieve that depends on the market conditions,” Reuters reported him saying.

Blackwell said the bank believed in pay for performance.

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