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Lloyds chief waives £2.4m bonus

Friday 13 January 2012 - by

Lloyds chief executive António Horta-Osório has waived his right to a yearly bonus of up to £2.38m (€2.86m/$3.65m), the bank announced on Friday.

The Portuguese told the group's board that he does not want to be considered for an annual bonus following a two-month stress-induced leave of absence taken between November 2011 and the start of January.

His move also owed to the unstable economic backdrop affecting families, he said in a statement.

"As chief executive, I believe my bonus entitlement should reflect the performance of the group but also the tough financial circumstances that many people are facing," he said

"I also acknowledge that my leave of absence has had an impact both inside and outside the bank including for shareholders. On that basis, I have decided to request that the board does not consider me for a 2011 bonus."

Horta-Osório was entitled to a bonus of up to 225 per cent on his £1.06m (€1.27m/$1.63m) annual salary, a Lloyds spokesperson said, equating to a maximum windfall of £2.38m.

The 47-year-old's announcement that he would be taking a leave of absence saw rating agency Moody's warn that it may have to downgrade the bank.

The rating agency said in November that Lloyds faced a "major challenge in ensuring continuity of leadership" with Horta-Osório's stand-in, Tim Tookey, set to leave the bank in February 2012. Moody's ultimately elected to leave the bank's rating unaffected.

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