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Pirc urge Lloyd’s shareholders to reject Horta-Osório’s ‘highly excessive’ £11.5m pay deal

SHAREHOLDERS at Lloyds Banking Group have been urged to vote down the ‘highly excessive’ £11.5m pay deal for António Horta-Osório, the group’s chief executive by shareholder advisory group, Pirc.

Pirc, which advises institutional investors, said shareholders should express their dissatisfaction with the Lloyds’ remuneration report and oppose it at the bank’s AGM on Thursday.

In a note to clients, Pirc wrote: “The balance of CEO realised pay with financial performance is not considered acceptable,” and nor was its “commensurate with the change in total shareholder return over the same period.”

Details of Horta-Osório’s bumper award was first mooted earlier this year when Lloyd’s both made a profit and coughed up a dividend to shareholders – a phenomenon not seen for the past seven years since before the beleaguered bank was saved from collapse by a taxpayer-funded lifeline.

The 51-year-old was the highest paid UK bank boss last year.

The independent body also urged investors to kick back against the proposed re-election of its chairman Norman Blackwell, due to the fact that he is already chairman of Interserve. But Blackwell has already stated that he will stand down as Interserve chair before its AGM in 2016.

Lloyd’s had not returned requests for a comment at time of publication.


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