The chief executive of Lloyds Banking Group PLC (LON:LLOY), Antonio Horta-Osorio, is to have his salary cut by around £228,000 as the banking giant aims to respond to criticism of its executive pension policy.
The FTSE 100 will also be pumping in £20mln to help boost the salaries of its 65,000 staff.
Currently, Lloyds provides its chief executive with a pension allowance equal to around 33% of his pay packet, much higher than the average 13% contribution for the rest of its employees.
However, the bank has since told shareholders that from next year it will increase the allowance for its staff to 15% of their base pay, according to sources quoted in the Financial Times.
The change will result in the aforementioned reduction in Horta-Osorio’s salary, although he is still guaranteed at least £2.8mln this year, plus bonuses.
Lloyds’ move to cut back the salary of its boss follows criticism earlier this year around executive pay in the industry.
Earlier this month, fellow blue-chip bank Standard Chartered PLC (LON:STAN) said it would halve the pension allowance for its chief executive and chief financial officer following protests from shareholders, bringing its policy in line with industry standards.
In late-morning trading on Wednesday, Lloyd’s shares were 0.4% higher at 61.5p.