Lloyds Banking Group (LON: LLOY) Executives Expected to Receive 80% Payout on Salaries

About 200 executives at Lloyds Banking Group (LON:LLOY) will be given one-time payments worth up to 80% of their annual salaries.

The bank, which is currently 43% owned by British taxpayers, negotiated the deal with its shareholders as it embarked on a merger with HBOS earlier in the year.

A spokesman from Lloyd Banking Group said that the government had approved the bonus package and stressed that payments would be made over the course of three years and in stock shares.

These executives will receive cash awards as a reward for integrating Lloyds with HBOS, a move that has lead to the loss of more than 11,000 jobs in the UK since the banks combined back in January.

Bonuses of up to 80% of salaries would equate to about 2.4 million GBP for the company’s board, including 828,000 GBP for its chief executive, Eric Daniels.

Prime Minister Brown waived competition rules to allow Lloyds to takeover HBOS. Brown as accused of trying to engineer the deal after it came out as he had discussed the issue with former Lloyds chief Victor Blank at a reception in London.