Lloyds TSB shares out big bonuses with its staff
Lloyds TSB, the fifth largest of the big five High Street banks and a major provider of UK current accounts, is sharing a £252m windfall payout from the company’s shares and bonus schemes, it has announced.
The award comes after the UK’s biggest bank announced its 2006 pre-tax profits had climbed 11% to £4.25bn. About £40m-worth of shares are to be awarded, with staff getting 3% of their annual salary in shares up to a maximum of £3,000.
Most of the money, about £165m, will be paid in the form of a performance bonus, although this figure does not include payments for senior executives.
“The numbers are good and Lloyds TSB is performing well, especially the retail side and the provision of UK current accounts” said City analyst Colin Perry, “although issues of size may represent a constraint on its operations.
“Let’s just say it will be very interesting to see what happens in the next year or so with this bank and what it intends to do in the future”
Lloyds TSB deputy group chief executive Mike Fairey said: “The reward package provides a great way for our staff to build up a nest egg, as well as recognising their hard work and commitment, which has resulted in these great figures.”
The bank is also matching £11m-worth of shares bought by employees as part of its Group Shareplan as an additional element of its reward package.