Lloyds chief Antonio Horta-Osorio forfeits £350,000 in bonuses after complaints scandal
Horta-Osorio will lose £350,000 following bank's £117m fine for mishandled complaints
Lloyds Banking Group boss Antonio Horta-Osorio will forfeit £350,000 (HK$4.15 million) in bonuses after the bank was fined £117 million for failings in the way it handled complaints about mis-sold loan insurance.
Britain's financial regulator on Friday handed Lloyds the largest penalty it has yet imposed in relation to the country's most expensive consumer scandal.
Responding to the fine, Lloyds said it would cut bonuses paid to staff by £30 million this year, while previous awards to executives worth £2.65 million would be forfeited.
Horta-Osorio, who was handed a pay package last year worth £11.5 million, would lose out on £350,000 as part of that process, sources said.
The Financial Conduct Authority said Lloyds, which is 19 per cent owned by the government, unfairly rejected a significant number of claims for compensation between March 2012 and May 2013.
Whilst our intentions were right, we made mistakes in our handling of some PPI (payment protection insurance) complaints. I am very sorry for this
The regulator's findings are a blow to Horta-Osorio, who has strived to repair the bank's reputation since its bailout during the 2007-09 financial crisis at a cost of £20 billion to taxpayers.