John Turner, the chief executive of the company that supplies contract staff to Lloyds Banking Group PLC’s (LON:LLOY) compensation scheme for payment protection insurance claims, earned £5.8mln last year.
The boss and founder of Swindon-based Regulatory Finance Solutions received a pay of £1.7mln, along with a £4.1mln dividend payment in June, The Times reported.
READ: Competition watchdog slams Lloyds after PPI errors
In comparison, the chief executive of Lloyds, Antonio Horta-Osorio, earned £6.4mln in 2017.
Turner, who owns 100% of the firm, was paid the dividend as the company undertook a restructuring that was funded in part by a £11mln loan from Lloyds, accounts filed with Companies House showed.
Lloyds spent more than £20mln per year with RFS in recent years, a source told the newspaper.
RFS, which provides Lloyds with temporary staff to administer the bank’s PPI redress payouts, generated turnover of £51.6mln last year. That means the Lloyds contracts account for about 40% of revenues.
The scheme to compensate those affected by the PPI mis-selling scandal has so far cost Lloyds £19.2mln.
The Financial Conduct Authority’s deadline for PPI claims is 29 August 2019, so Lloyds could have to set aside more money for the issue.