INVESTORS in taxpayer-backed Lloyds Banking Group protested over executive pay plans at the firm’s annual general meeting.
More than 8.5% of votes were cast against approving the directors’ remuneration report for 2009.
The vote came amid criticism of the group’s pay policies for top bosses and followed calls for shareholders to vote down its remuneration plans.
Chief executive Eric Daniels waived his bonus for 2009, but the bank’s remuneration committee was criticised for making the award after Lloyds made losses of £6.3bn.
The decision has also been widely blamed for the announcement in March that the chairman of the remuneration committee Wolfgang Berndt was to retire at yesterday’s shareholder meeting.
Chairman Sir Win Bischoff told investors at the gathering in Edinburgh that the group had to “strike a balance” in making pay decisions for key executives.
He said the board – on the recommendation of the remuneration committee – believed that Mr Daniels merited a bonus because of his “significant” personal contribution and the group’s overall performance, despite its losses, in 2009.
Referring to wider incentive payments across the group, Mr Bischoff said it was “right they receive appropriate financial recognition when stretching financial targets are met”.
His address to shareholders came the week after it was revealed that Lloyds, which is 41% owned by the state, is back in profit and expects to stay in the black for the rest of the year.
