Shareholders in Lloyds Banking Group questioned its board on management, pay and incentives at the bailed-out lender's annual meeting in Edinburgh yesterday, but ultimately supported its executive pay plans. Only 8.5 per cent of votes were cast against the remuneration report.
Britain's largest retail bank, which is 41 per cent owned by taxpayers, triggered shareholder concerns after it awarded its chief executive, Eric Daniels, a full bonus for 2009, despite billions of pounds of losses.
The chairman of the bank's remuneration committee, Wolfgang Berndt, subsequently decided to step down at the AGM. Mr Daniels – the only boss of a rescued British bank to have retained the senior job through the economic crisis – waived a bonus worth more than £2m in February. Lloyds shares closed nearly 6 per cent lower at 56.64p, below the 73.2p average paid by the Government for its investment.