Lloyds Bank’s top executives have received a bumper windfall despite the lender’s rocky results and mass closure of high-street branches.
In its annual report published on Thursday, the bank said its top two bosses would receive nearly £2m in bonuses in 2024 in addition to their regular payouts.
Chief executive Charlie Nunn will receive a £1.1m payout, with finance boss William Chalmers set for £812,014.
The Remuneration Committee said the sum reflected the company achieving 68.1 per cent of its performance target in 2024.
Nunn’s 2024 fixed income was set at £2.5m, with Chalmers’ at £1.6m.
However, Nunn took home a total of £5.6m, a 53 per cent increase from 2023, which the bank said was driven by long-term incentive rewards from prior years. The boss received an extra £2m for the bank’s performance last year.
They added the current performance incentives served as a “pre-grant test” for issuing long-term targets.
Nunn and Chalmers could be set for a payout worth 300 per cent of their salary, subject to meeting performance targets from 2025 to 2027.
The committee said Nunn had “embodied the group’s values and has led through a year of substantial transformation and external uncertainties”.
This follows a blitz of branch closures from the group, with over 130 Halifax, Lloyds and Bank of Scotland sites set to close amidst new strategic operations.
Lloyds Bank jobs review
As revealed by City AM earlier this month, the lender placed thousands of jobs in its IT division under review as part of its £4bn transformation plan.
The bank was understood to have told some 6,000 tech and engineering staff that their jobs were at risk of redundancy as part of a structure overhaul designed to accelerate its technology development.
The lender’s profit also took a tumble in its annual results as the motor finance scandal heated up.
Pre-tax profits were down 20 per cent at £6bn, compared to £7.5bn in 2023 after a total of £1.2bn was set aside for potential payouts.
However, the lender’s stock remained resilient, up three per cent following market open on the day of its annual results.
Commenting at the time, Nunn said: “Looking forward, we are building momentum as we enhance our franchise and deliver differentiated outcomes for our customers.
“Our strategy is transforming our capabilities, enabling us to deepen relationships with our customers, grow in high-value areas and drive cross-group collaboration.
“We are confident of generating more than £1.5bn of additional income from our strategic initiatives by 2026 as we build towards higher, more sustainable returns.”