Frank Field and Rachel Reeves query pension and share awards

02 May 2019

The Chairs of the Work and Pensions Committee and Business, Energy and Industrial Strategy Committee – Frank Field and Rachel Reeves – are today querying pension levels of senior executives at Lloyds Bank Group, in the wake of reports that Chief Executive António Horta-Osório has “voluntarily” given up a portion of his pension.

The two senior MPs ask the Chair of Lloyds’ Remuneration Committee why Mr Horta-Osório’s pension contribution rate stands at 33%, when the maximum employer contribution rate stands at 13% for other Lloyds employees – and the contribution rate for Lloyds’ Chief Operating and Financial Officers stands at 25% of salary.

The Committees also question whether Mr Horta-Osório’s fixed share award increase, to £1.05 million, is “in the spirit of the Investment Association’s guidelines”.

The Committees have also written to the Investment Association itself with questions on the corporate response the guidelines.

In March, the Business, Energy and Industrial Strategy Committee (BEISC) published a report saying that companies must do more to link top bosses’ pay to that of the rest of their workforce. The report said that “huge differentials” in bosses’ pay are “baked into the pay system” and that a heavy reliance on “over-generous”, incentive-based executive pay, too often waved through by weak remuneration committees in the habit of designing ever more complicated pay packages, is at the root of excessive executive pay packages.

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