Despite a turbulent financial year and widespread branch closures, top executives at Lloyds Bank are set to enjoy a significant bonus windfall.
The bank's annual report, released on Thursday, revealed that its two leading figures will receive nearly £2m in bonuses in 2024, over and above their regular remuneration, as reported by .
CEO Charlie Nunn is due to pocket a £1.1m payout, while finance chief William Chalmers is slated for £812,014. The Remuneration Committee justified these sums as reflective of the company achieving 68.1% of its performance target in 2024.
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Nunn's fixed income for 2024 was pegged at £2.5m, with Chalmers' at £1.6m. However, Nunn's total take-home pay amounted to £5.6m, marking a 53% increase from 2023.
This surge was attributed to long-term incentive rewards accrued over previous years, with an additional £2m awarded for the bank's performance last year. The bank also noted that current performance incentives act as a "pre-grant test" for setting long-term targets.
Looking ahead, both Nunn and Chalmers could be in line for a payout worth 300% of their salary, contingent on meeting performance targets from 2025 to 2027. The committee praised Nunn for embodying the group's values and steering the company through a year marked by substantial transformation and external uncertainties.
This news comes on the heels of a wave of branch closures across the group, with over 130 Halifax, Lloyds, and Bank of Scotland sites earmarked for closure as part of new strategic operations. .
As previously reported by City AM, the banking institution initiated a thorough assessment of thousands of positions within its IT division as part of a comprehensive £4bn transformation strategy. Approximately 6,000 technology and engineering personnel were informed that their roles were susceptible to redundancy due to a structural overhaul aimed at expediting technological advancements.
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Furthermore, the lender's annual results revealed a decline in profit, largely attributed to the escalating motor finance scandal.
Pre-tax profits plummeted by 20% to £6bn, down from £7.5bn in 2023, following a £1.2bn allocation for potential payouts.
However, the lender's shares demonstrated resilience, increasing by 3% after the market opened on the day the annual results were announced.
Commenting on the situation, Nunn stated: "Looking forward, we are building momentum as we enhance our franchise and deliver differentiated outcomes for our customers.
"Our strategy is transforming our capabilities, enabling us to deepen relationships with our customers, grow in high-value areas and drive cross-group collaboration.
"We are confident of generating more than £1.5bn of additional income from our strategic initiatives by 2026 as we build towards higher, more sustainable returns."