It always in the fine print.
So, Lloyds staff got no bonuses for 2020 despite the bank making a pre-tax profit of £1.2bn. The bank says that staff didn’t get GPR awards because Lloyds didn’t hit its underlying profit target for 2020.
Now, Mr. Horta-Osorio was awarded 2,269,762 shares worth £740,000 at a meeting of the Remuneration Committee on 19 February 2021. And guess what, he’s trousered all that money despite not hitting any of his financial targets. In fact, the Perseverance Rover on Mars was closer to hitting financial targets than Mr. Horta-Osorio, but he still gets a wheel-barrow full of cash.
And it gets worse. When considering share awards based on 2020 for Mr. William Chalmers, the Group Finance Officer, the Chairman of the Remuneration Committee said it: “took into account the fact that while there has been weak performance against financial metrics set before the true impact of the pandemic was known, the overall performance against customer and other non-financial metrics is strong”. So, when it comes to Senior Executive the bank will take into account non-financial metrics when awarding lucrative share options but not when it comes to the bonuses for 67,000 staff.
Mr. Chalmers has been given an LTSP award of 75% of his basic salary for his 2020 performance. That is worth £605,250.
Another 559 executives in Lloyds are going to trouser millions in share plan awards for 2020.
The other 67,000 staff in Lloyds are getting a measly £400 in shares because their bonuses are based on hard financial targets whereas for bosses their bonuses are based on, amongst other things, customer satisfaction rates and engagement scores.
We believe that Mr. Sinnott, Group Director, People and Property, will be a beneficiary of one of those share awards. Perhaps he’d like to tell staff how much he’s getting.
£400, that’s all Lloyds staff are worth. That’s the legacy of Antonio Horta-Osorio. His 10-year reign as Chief Executive will be examined in more detail in our next Newsletter.
In the meantime, members with any questions on this should contact the Union’s Advice Team on 01234 262868 (choose Option 1).