Lloyds chief Daniels gets 80% pay rise

Eric Daniels, the chief executive of Lloyds TSB, saw his pay package soar nearly 80 per cent to £1.9m last year when the bank's underlying profits rose just 10 per cent.

Mr Daniels, who took up his post as CEO in June 2003, received a 26 per cent rise in his basic salary from £596,000 to £750,000. His bonus shot up from £258,000 to £960,000. He also received other benefits, including a housing allowance, worth £193,000.

The bank's profits from continuing operations climbed 10 per cent to £3.4bn last year, while overall profits fell 20 per cent to £3.5bn after the sale of non-core businesses.

Lloyds also awarded Mr Daniels 939,177 share options with an exercise price of 419.25p last year, which would net him £488,372 at the current share price. When he joined Lloyds in 2001 from the United States, he was granted 216,763 share options now worth about £1m for £1. The bank boosted Mr Daniels' pension pot by £428,000 to £1.14m last year.

Mr Daniels is Lloyds' best-paid director, followed by Michael Fairey, the deputy chief executive, whose total pay package rose from £1.14m to £1.48m.

Philip Hampton, who left as finance director in January 2004 and now chairs Sainsbury's, received a £342,000 pay-off.