MPs to grill Lloyds boss over pay

Antonio Horta-Osorio

The Bank of Scotland owner last week avoided a shareholder revolt over pension pay despite MPs accusing bosses of “boundless greed” on the eve of its annual meeting in Edinburgh.

And the Work and Pensions and Committee has now called on Mr Horta-Osorio and remuneration committee chair Stuart Sinclair to give evidence to MPs in person before the summer recess.

Mr Horta-Osorio took home £6.3m last year, which included a pension contribution of 46 per cent of his base salary - compared to a maximum 13 per cent for other employees.

In February, he voluntarily reduced his pension contribution to 33 per cent.

The bank’s boss has also faced criticism after receiving an annual pay packet of £6.27 million last year.

A Lloyds spokeswoman said: “We have received the letter and will respond in due course.”

Ahead of last week’s AGM, Frank Field MP, chairman of the parliamentary committee, accused Lloyds of showing “feverish desperation and boundless greed” over the pay issue.

However, the bank avoided a shareholder revolt with only around 8 per cent of investors voting against its pay proposals at its annual shareholder meeting last week.

Lloyds saw 91.95 per cent of votes made in favour of its overall pay plans at the AGM, an improvement on last year’s result when one-fifth of shareholders voted against its remuneration report.

Speaking at the meeting before the vote, Lloyds chairman Lord Blackwell sought to defend Horta-Osorio’s £6.27 million-a-year pay deal.

He said the chief executive and other directors have “earned through their performance the rewards that they are entitled to”.

He added: “Let me be clear – our view is we should and need to pay for performance.

“Not many people would do the arduous hours and arduous tasks they do for free.”

However, one shareholder responded by telling the meeting at the EICC: “Paying people hundreds of thousands and even millions of pounds a year where we have food banks and people on benefits is wrong in a civilised society.”

And last week, Rachel Reeves, chairwoman of the business, energy and industrial strategy committee, said: “The pension for the Lloyds chief executive is only the latest example of a damaging narrative for UK business –there being one rule for the bosses, another for the workers.”