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?1m basic for incoming new Lloyds CEO


The Old Tolbooth

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The Old Tolbooth

Is this just ridiculous or what? Is it little wonder the country is in such a bad way when people at the head of institutions that struggle financially are being paid so heavily? I'm at a loss as to think as to what exactly this guy actually does for a salary that size, I'm pretty sure there would be someone out there who would happily do it for half of that salary and do just as good a job.

 

Here's the story

 

http://www.bestadvice.net/story.php?id=19535

 

Lloyds Banking Group has appointed Ant?nio Horta-Os?rio to succeed Eric Daniels as CEO.

 

The CEO of Santander will join the group early in 2011 and will take over as CEO on 1 March 2011.

 

He will have an annual salary of ?1,035,000 and a discretionary annual bonus of up to a maximum of 225% of salary. Lloyds says is intended to award a long term performance-based share incentive of up to a maximum of 420% of salary for 2011 which will vest in three years and only if stretching performance targets have been exceeded by a significant margin.

 

Horta-Os?rio will receive a cash allowance to fund personal pension arrangements, which will be ?610,000 in 2011. In addition, he will be compensated for the loss of deferred cash and shares and pension benefits he is giving up as a result of his resignation from the Santander Group.

 

Sir Win Bischoff, chairman of the Lloyds Banking Group said: "Mr Ant?nio Horta-Os?rio stood out in an excellent shortlist of potential candidates for this position. We are delighted to have attracted someone with his experience in, and understanding of, the UK retail and commercial banking industry, as well as his track record in integrating three well respected UK retail banking franchises. Ant?nio?s drive, enthusiasm and commitment to customers along with his proven ability to build and lead strong management teams will be of significant value to all stakeholders of the Group. The Board and I look forward to working with him to ensure the success of the next stage of development of the Group."

 

Horta-Os?rio said: "I am honoured to have been invited by the Board to undertake the challenge of leading Lloyds Banking Group. I am conscious of the vitally important role the Group plays in the UK?s social and economic fabric. Lloyds is a key player in the UK economy and is instrumental in supporting the future growth and prosperity of the country. I am personally committed to ensuring the bank plays its part in lending to SMEs and supporting homeowners. To achieve this we will build on the Group?s focus of delivering growth through strong customer relationships and the creation of innovative products and services."

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I P Knightley

I've no doubt that he's very able but agree that there's no way he's worth all that dosh. The salary, maybe, but saying he's got a potential ?2.25 million bonus waiting for him when there's been all the press about removing the 'obscene' bankers' bonuses is just crazy.

 

They call them 'stretch' targets but I'd be very surprised if this guy didn't "earn" at least 75% of the maximum.

 

Disappointed that I wasn't approached about this, given my indepth command of the JKB economy...

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Well it's good to see that my money's going to good use :angry:

 

How can anyone justify getting paid that sort of money when the government's cutting things left right and centre.

 

I might have to have a change in career, :whistling:

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Geoff Kilpatrick

As a civil servant, surely his pay should be based on the same scale as the chief executive of a council or a member of the cabinet.

 

If they were a private entity, it would be a matter for the shareholders. As the British taxpayer is the shareholder, they should be demanding recourse.

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He's getting twice what Nade got. Given the responsibility the job carries I dont see that as excessive really. I certainly wouldnt want a job like that at any price, he's welcome to it.

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Sterling Archer

It's not that bad, was doing research on the company I work for for coursework and saw that a few years back the CEO got 1.5 mil salary, 12mil bonus and 38 mil in share options.

 

Nice if you can get it.

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As a civil servant, surely his pay should be based on the same scale as the chief executive of a council or a member of the cabinet.

 

If they were a private entity, it would be a matter for the shareholders. As the British taxpayer is the shareholder, they should be demanding recourse.

 

Bingo! :thumbsup:

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The Old Tolbooth

As a civil servant, surely his pay should be based on the same scale as the chief executive of a council or a member of the cabinet.

 

If they were a private entity, it would be a matter for the shareholders. As the British taxpayer is the shareholder, they should be demanding recourse.

As ever Geoff, the voice of reason, I completely agree with you mate.

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Malinga the Swinga

As he is now my new boss, I wish him every success, because considering who he is replacing, he cannot help to be more popular than the Quiet American and his band of hatchet men. Re-applying for my job for the 3rd time in 18 months, only this time, its 66% reduncancies in area I work, but would we mind working cover of 24 hours by 7 days a week while we decide if you can keep your job. And also, can you train up Indian workers with your experience as they represent the future working model.

 

Meanwhile, its job creation in London and Manchester, whilst sites in Edinburgh, Rosyth and Dunfermline are closed and relocated to Chennai. You sometimes wonder what the gov, with its 42% stake is doing to allow jobs to leave the country, but hey, according to our bossses, the UK economy benefits if jobs go to India.

 

No, he isn't worth the salary, and no, he shouldn't get the proposed bonus of some 420%, yes 420%, of his salary if he reaches the targets, but replacing Daniels had to be done, as he is yesterdays man, who is not rated anywhere, apart from his own cronies on the board.

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John, look at the positives - his salary alone will boost the average salary in the financial services industry, thereby making your next payrise negotiations that bit easier. (Or are you self-employed?) :unsure:

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Is this just ridiculous or what?

 

Market rates. He's done a tremendous job at Santander.

 

And let's face it, Wayne Rooney earns more and I know who will have more impact on the economy.j

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Geoff Kilpatrick

Market rates. He's done a tremendous job at Santander.

 

And let's face it, Wayne Rooney earns more and I know who will have more impact on the economy.j

 

 

He may well have done but he has joined the public sector. He should be paid public sector rates.

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He may well have done but he has joined the public sector. He should be paid public sector rates.

 

Fine in principle but they're competing against commercial enterprises with first rate managers. They need similar at the top not ineffective public sector managers whose idea of delivering value is the Edinburgh tram project. :lol:

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Geoff Kilpatrick

Given that banks are receiving funny money and with that they are playing the markets to make their profits, I'd even fancy TIE's chances of making money in banking!

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The Old Tolbooth

John, look at the positives - his salary alone will boost the average salary in the financial services industry, thereby making your next payrise negotiations that bit easier. (Or are you self-employed?) :unsure:

Self employed mate, I love being my own boss :thumbsup:

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Self employed mate, I love being my own boss :thumbsup:

 

John, I never got round to thanking you for offering to help me out with that FSA form I needed completing just before your marriage, even though there was no benefit in it for you. Turns out I managed to do it all online and by post. I apologise for that, if I can ever return the favour in future I will be delighted to do so. Top man in my book.

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