HBOS executives find no places on merged board

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The Independent Online

Lloyds TSB has announced more details of the management structure that will come into force after its takeover of rival HBOS – and included nobody from the target on its board.

The four executive board-members – Helen Weir, the head of UK retail banking; Truett Tate, head of wholesale; Archie Kane, head of insurance, and Tim Tookey, finance director – all come from the Lloyds side of the business. The executive board will report to the chairman Sir Victor Blank and the chief executive Eric Daniels, both also from Lloyds.

A spokeswoman for Lloyds said app-lications for the posts had been fairly considered from across the business.

"Eric [Daniels] met with candidates from both the HBOS and Lloyds side of the business," she said. "We had a strong pool of candidates."

However, the lopsided representation of Lloyds which has resulted from this process reinforces the point that HBOS was forced into the merger by the Government over the period of a weekend in September after needing a bailout. This desperation undermined its negotiating power and gave it very little sway in securing guarantees for the terms of the deal or the running of the combined company.

The new team will take its place after the merger completes next year.

Although no board members are from the HBOS side, the new company secretary and general counsel Harry Baines comes from the Scottish-based bank. On the company's five-person executive committee of which four members were announced yesterday, HBOS's Jo Dawson will take the post of wealth and international director.

Next week, the takeover's circular will be sent to shareholders. The bank is also due to make a statement on trading conditions next week.

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