Lloyds CEO gets £2.5m 'golden handcuffs'
In an attempt to improve the bailed-out Lloyds Bank, CEO Antonio Horta-Osori has been offered 3 million shares on condition the share price is above 73.6 pences for 30 consecutive days.
The third week ended with a price of 80.37 pences per share on Friday, making him closer to the £2.5 million reward. However, the 49-year old won’t be able to claim the money until 2018.
In the third quarter of 2013 the bank doubled earnings before tax (EBITDA) from £831 million to £1.52 billion, beating analyst expectations of $1.46 billion. The rise was associated with a reduction in reserves for possible loan losses, which decreased by 47 percent to £670m last quarter.
Pre-tax profit doesn’t include £750m expenditures to compensate clients’ losses for imposed insurance contract loans, as well as asset sales and department separation costs. Taking these into account the bank is estimated to lose £1.3 billion against £374 million a year ago.
Lloyds reported the renewal of dividend payments, which haven't been paid since 2009. The bank is going to decide on dividend policy by the end of 2013.
Since being rescued by the UK government, the Bank cut 7,000 staff in 2012 after a £3.5 billion loss the year before. It plans to fire another 8,000 employees within two years.
Last month 6 percent of Lloyd's shares were sold by the government for 75 pences each. No further sales are expected for several next month said Chancellor George Osborne.
