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£4.6M Golden Hello For New Lloyds Boss

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Welcome to the buffet....

Bailed out Lloyds Banking Group has handed its new chief executive António Horta-Osório shares currently worth £4.1m to buy him out of pay deals at his previous employer, Spanish bank Santander.

But the total value of his "golden hello" rises to £4.6m as he is also receiving cash of £516,000 in three equal tranches between 2011 and 2013.

The annual report from Lloyds published on Wednesday also shows that the bank is pumping up to 75% of his £1.06m salary into his pension each year: a possible £880,000 a year. The payments are in addition to his £1.06m salary – which has already risen from the £1.03m on which he was hired – a potential maximum annual bonus of £2.4m and a long-term incentive plan of 4.2 times his salary (some £4.5m), which was promised to him when he was hired in November. This is a potential £8m a year – before his complex pension arrangements are taken into account.

While the broad outline of Horta-Osório's annual pay was announced when he was hired, the terms of his buyout from Santander was not known. But the annual report provides additional information, such as the £4.6m in cash and shares he is being handed to join as well as the unusual "reference salary" of £1.2m that will be used to calculate certain elements of his long-term pay plans and his pension. Some 50% of this (£600,000) is handed to him annually, double the 25% of salary that other Lloyds directors can receive.

The Portuguese-born banker also has a second element to his pension, which the bank said was necessary because he "suffered significant loss in relation to his previous pension accrual" when he left Santander. Under the terms of the second element he can have another 26.5% of his salary (£280,000) a year over his first six years of service, which will only be paid provided the bank achieves certain share price targets.

The scale of rewards outside the boardroom of the bank, which is 41% owned by the taxpayer, is also revealed under the Project Merlin agreement between the banks and the government. These show that five non-boardroom senior executives received between £1.4m and £4.8m. Their identities do not need to be published.

Eric Daniels who was chief executive during this period, and who stepped down at the end of February to hand over to Horta-Osório, earned £2.5m in salary and bonuses for 2010.

Chairman Sir Win Bischoff makes a "personal statement" in the annual report in which he outlines how he personally handed the approach to Horta-Osório last year, after Daniels announced his retirement.

The shares being handed to the former Santander banker do not pay out immediately and vest between now and 2013. Of the 6m shares he has been awarded, some 1.7m shares are due to vest in 2013 provided certain performance targets based on the share price are achieved. But the bulk – some 4.3m – vest between 2011 and 2013 as long as he remains employed by the bank.

Lloyds shares were worth 59.711p today, down almost 0.5p.

http://www.guardian.co.uk/business/2011/mar/30/lloyds-antonio-horta-osorio-pay-deal-shares

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Oops!

http://stockcharts.c...id=p98159181506

Good to see Lloyds shareholders (and customers) paying for his loss of benefits at Santander.

I'd love to take a virtual sidebet that he'll be offloading bits of Lloyds to Santander within a couple of years, but I can't imagine anyone would take the other side. :lol:

Edited by Red Karma

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Oops!

http://stockcharts.c...id=p98159181506

Good to see Lloyds shareholders (and customers) paying for his loss of benefits at Santander.

I'd love to take a virtual sidebet that he'll be offloading bits of Lloyds to Santander within a couple of years, but I can't imagine anyone would take the other side. :lol:

Surely the first step will be to join the Inter Alpha? A group of the world's most upstanding and well run banks?

* AIB Group, Eire

* BANCO ESPIRITO SANTO SA, Portugal

* Santander, Spain

* Soc Gen, France

* ING Bank, the Netherlands

* Intesa Sanpaolo

* KBC Bank, Belgium

* Nordea, Denmark, Finland and Sweden

* National Bank of Greece, Greece

* Commerzbank

* The Royal Bank of Scotland Group, UK

http://inter-alpha.com/default.htm

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Welcome to the buffet....

Is the same "Fat Tony" Horta-Osório the one-time collection man for shylock loans in Italy and Spain? Looking at the photos--it is him! Fat Tony and Paulie "Grease man" Leotardo used to work the fashion district in Milan when fashion designers got behind in their payments.

Bankster!

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Is the same "Fat Tony" Horta-Osório the one-time collection man for shylock loans in Italy and Spain? Looking at the photos--it is him! Fat Tony and Paulie "Grease man" Leotardo used to work the fashion district in Milan when fashion designers got behind in their payments.

Bankster!

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This really grips my sh;t.

I have a bob or two sitting in Lloyds at the moment. When I return to the UK next month, my intention is to transfer it to someplace that hasn't bought into all this madness. I'll admit I haven't done any homework on this, so does anyone have any recommendations? I can't be the only one who's thinking this way.

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Bargain, I mean you've got to attract the top talent and this is the way forward.

It's not like running a bank is easy.

+1 he is worth every penny .

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Not a bad screw for a guy who's currently banned from banking: Santander chief gets banking ban

Quality!

You not him.

It goes on everywhere, there is a level that the select elite reach and no matter how useless they are or wayward they are, they will always end up somewhere with a lucrative package to talk the talk somewhere else.

These people definitely aren't superhuman or savants, annoying when there will be more able, cheaper people willing to do the jobs. It irks me particularly in the public sector.

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This really grips my sh;t.

I have a bob or two sitting in Lloyds at the moment. When I return to the UK next month, my intention is to transfer it to someplace that hasn't bought into all this madness. I'll admit I haven't done any homework on this, so does anyone have any recommendations? I can't be the only one who's thinking this way.

I'm feeling the same way, my current account is with Lloyds but this sounds like a good candidate for the final straw, if something less repulsive actually exists.

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  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • up 5%



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