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Lloyds chief executive is a ‘winner’ who deserves £6.2m package, MPs told | Business News

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The head of pay at Lloyds Banking Group has defended the package earned by its chief executive, telling MPs: “People like a winner.”

Stauart Sinclair, who chairs the remuneration committee at Lloyds, told the work and pensions committee that staff at the bank did not resent Antonio Horta-Osorio’s arrangements.

Last year, he picked up a £6.27m pay package that included a slashed pension contribution of 33% – down from an original 46%.

The average Lloyds worker is on about £30,000 and typically receives a pension contribution of 13%.

Mr Sinclair denied any suggestion of a rift with staff over pay when he told the MPs: “When I go out to see people who are on £22,000, £30,000, £40,000, they see Antonio as a winner, because he brought this bank back from the brink.

“People regard that as a big achievement and there’s a charisma around Antonio which actually means a lot of people say ‘good luck to him – he works incredibly hard and I don’t resent the money’.”

Frank Fields MP questions witnesses Paul Budge, Finance Director, Arcadia Group, Director Taveta Investments Ltd, Chris Harris, Group Property Director, Arcadia Group, and Brett Alexander Palos, Director, Taveta Investments Ltd, who were appearing before the Business, Innovation and Skills Committee at Portcullis House in London, on the collapse of BHS. PRESS ASSOCIATION Photo. Picture date: Wednesday June 29, 2016. See PA story CITY BHS. Photo credit should read: PA Wire
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Frank Field accused Mr Horta-Osorio of greed

Frank Field, the MP who chairs the committee, hit back – saying Mr Horta-Osorio “certainly is a winner”.

He asked the chief executive: “How do you justify your greed?”

Mr Horta-Osorio responded: “It’s very difficult to accept the word ‘greed’ that you used … when my total fixed compensation, at £2.8-something-million… is lower than the group chief executive of HSBC.

“I strongly believe… there is in the market a remuneration value in the market for each position.”

He also confirmed that when he cut his pension contribution to 33% in February, he was awarded an extra £150,000 in fixed share awards over five years in what has been slammed as a stealth pay rise to offset the reduction.

Lloyds returned to private hands in 2017 – almost nine years after its taxpayer bailout at the height of the financial crisis.

Mr Horta-Osorio took over in 2011 and has been credited with driving its recovery.

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