Lloyds take back £2 million of executive bonuses

Lloyds Banking Group is expected to claw back £2 million in bonuses from 10 executives including former chief executive Eric Daniels.

A report from the BBC said the executives, which include four board directors, will be required to repay the cash for their role in the bank's payment protection insurance (PPI) mis-selling scandal.

BBC business editor Robert Peston said that Daniels is expected to lose as much as half of his £1.45 million bonus, while three other board directors are expected to see about £250,000 clawed back.

About six other executives, below board level, would lose around £100,000 each, he reported.

Poor financial performance

This is the first time a British bank has clawed back bonuses from executives, following a financial performance that was worse than expected.

Lloyds has set aside £3.2 billion to cover compensation for those customers who were mis-sold PPI.

The news comes ahead of the bank's results - due on Friday - which are forecast to include a loss of £3.5 billion.

This article was written for our sister website Interactive Investor