Lloyds CEO Charlie Nunn may reap a windfall worth over £13 million if he secures a pay hike of up to 45% under new rules. The move comes as Lloyds joins its rivals in shedding the cap on bankers' bonuses, allowing for significantly higher payouts.
The bank's remuneration committee is working on a three-year executive pay policy that will take advantage of the relaxation of these rules, which have sent potential bonuses soaring at rival banks such as Barclays and HSBC. There, chief executives are eligible for eye-watering sums worth up to £14.3 million and £15 million respectively.
Nunn's prospective annual pay packet would be worth around £13.2 million if he hits his targets. This represents a significant increase from the current maximum offer of £9.1 million. While it is unclear what form this increased payment will take, Lloyds has suggested that Nunn's fixed salary will be significantly reduced to make up for the larger performance-related bonus.
The decision to lift the cap on bankers' bonuses was made by UK regulators in an effort to boost the attractiveness of the city to financial services firms. However, critics have argued that this move simply allows banks to inflate salaries and reduce their ability to control pay packages based on performance.
A group of asset managers recently cautioned against following rivals' lead with higher pay rises, which could give Lloyds shareholders pause for thought. A spokesperson for Lloyds has stated that the bank's new pay policy will reflect market developments and regulatory changes while maintaining a connection between performance and reward.
As the UK's largest banks prepare to reveal their annual reports later this month, it remains to be seen how the scrapped bonus cap has influenced their chief executives' pay packages. Lower-ranking staff have already benefited from looser bonus rules, with top bankers receiving significant payouts in 2024.
The bank's remuneration committee is working on a three-year executive pay policy that will take advantage of the relaxation of these rules, which have sent potential bonuses soaring at rival banks such as Barclays and HSBC. There, chief executives are eligible for eye-watering sums worth up to £14.3 million and £15 million respectively.
Nunn's prospective annual pay packet would be worth around £13.2 million if he hits his targets. This represents a significant increase from the current maximum offer of £9.1 million. While it is unclear what form this increased payment will take, Lloyds has suggested that Nunn's fixed salary will be significantly reduced to make up for the larger performance-related bonus.
The decision to lift the cap on bankers' bonuses was made by UK regulators in an effort to boost the attractiveness of the city to financial services firms. However, critics have argued that this move simply allows banks to inflate salaries and reduce their ability to control pay packages based on performance.
A group of asset managers recently cautioned against following rivals' lead with higher pay rises, which could give Lloyds shareholders pause for thought. A spokesperson for Lloyds has stated that the bank's new pay policy will reflect market developments and regulatory changes while maintaining a connection between performance and reward.
As the UK's largest banks prepare to reveal their annual reports later this month, it remains to be seen how the scrapped bonus cap has influenced their chief executives' pay packages. Lower-ranking staff have already benefited from looser bonus rules, with top bankers receiving significant payouts in 2024.
. Like, £13 million for one year is insane! I'm all for paying people well if they're crushing it at their jobs, but this seems like a recipe for disaster - what's next? CEOs and other bigwigs getting paid in private jets and yachts? 
It just doesn't sit right with me that these huge payouts are going to be justified by performance-related bonuses. And let's not forget, the bank's fixed salary will be significantly reduced... so basically they're just passing on the cost to the staff 
. I guess we'll have to wait and see how this all plays out when the annual reports come out later this month 
my fave banking CEO ever tho lol! 
i hope he uses some of that cash to upgrade the bank's mobile app tho, mine is such a mess 
So I was thinking, what's the real cost of this windfall for Charlie Nunn? Is it really just about him getting a bigger paycheck, or is there something more at play here? Like, are we celebrating our CEOs' success too much? Don't get me wrong, bonuses can be motivating, but when they start to outweigh performance, that's when things get sketchy. What if instead of paying out massive bonuses, Lloyds used that money to invest in its customers or employees? That'd be a real game-changer. We need to think about what we value more - short-term gains or long-term growth. 
. But what about those who aren't top bankers? It feels like the rich are getting richer while the rest of us struggle 
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And let's be real, if the bigwigs are raking it in, what about the poor souls stuck in the cubicles? It's like they're expected to be doing all the hard work while the CEOs play with their toys. 
. And what about all those lower-ranking staff who are still reeling from the bonus cap changes? It doesn't seem fair that they're already seeing benefits, but these top bankers get an even bigger slice of the pie 
. Like, £13 million is a wild amount of money for one person to make off the back of their job, you know? And it's not like they're curing cancer or anything, just making bank (pun intended) 
. And what about all the criticism about banks inflating salaries and reducing control over pay packages? It's just weird that Lloyds is going ahead with this policy despite the warnings from asset managers 
and I'm trying to figure out how to use it lol anyway like what's up with these bankers getting so much money?? £13 million is crazy 
I mean I know they're rich already but still. I guess it's good for the bank's profits or whatever. I don't really get why we need to know about this stuff though... can someone explain how bonuses work again? 
. I know the government's trying to attract more financial firms to the UK, but can't we find a way to balance business growth with fairness and reason? It's just not right when you consider how many people are living on minimum wage or struggling to pay their bills 
.
. What do you think, should there be a cap on these kinds of bonuses or something?
Anyway, sounds like Lloyds is playing catch-up with its UK rivals in terms of pay packages – how about using that extra cash for something actually beneficial, like customer support or community programs? 
. And let's be real, if he hits his targets, he deserves it! The thing that really gets me though is that all this extra cash might just go towards fancy bonuses instead of investing in the company or paying off debts 
... So yeah, it's a bit of a mixed bag, but overall, I'm trying to look on the bright side 
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