Lloyds Banking Group Plc lost a legal battle to withhold bonus payments to former CEO Eric Daniels, who orchestrated the bank's controversial takeover of HBOS Plc, the Financial Times reported March 27.
A British court judge ordered Lloyds to award Daniels up to £1.35 million after ruling that the bank has unlawfully withheld his bonus under a 2009 share-based long-term incentive program. Daniels claimed that he is entitled to the share awards in 2012 after Lloyds hit targets related to the integration of HBOS, including achieving at least £1.5 billion in cost savings in 2011, the report noted.
Lloyds' former head of wholesale banking, Truett Tate, also brought a similar claim against the bank and will receive a bonus worth up to £933,230, the FT added.
Lloyds said it accepts the court's decision and now considers the matter closed. The bank must pay Daniels and Tate 2,063,640 shares and 1,424,778 shares, respectively, as well as dividends they would have earned since 2012, within two weeks.