Lloyds share price: Lender hands chief executive £8.77m for 2015

Lloyds Banking Group (LON:LLOY) has handed its chief executive an £8.77 million pay package for last year, the bailed-out lender has said. Following a performance adjustment, however, Horta-Osorio’s remuneration stood at £8.54 million.

Lloyds’ share price has fallen in today’s session, having shed 1.94 percent to 71.34p as of 14:20 GMT, and underperforming the benchmark FTSE 100 index which currently stands 0.47 percent lower at 6,153.45 points. The group’s shares have lost 12.33 percent of their value over the past year, as compared with a 10.97-percent fall in the Footsie.
Lloyds disclosed in its annual report published today that Antonio Horta-Osorio’s total remuneration for 2015 stood at £8.77 million, down from £11.5 million for the prior-year period. His overall pay package was dragged down by his long-term incentive which came in at £5.25 million, as compared with £7.38 million a year ago. The bailed-out lender noted that a share price of 73.72p had been used to indicate the value of last year’s long-term incentive plan, marking Lloyds’ average share price in the last quarter of 2015.

Horta-Osorio’s pay package also includes an £850,000 bonus, which he will only receive if the government sells off the rest of its stake or if Lloyds’ share price remains above 75.5p on average for 126 consecutive days.
Lloyds’ annual report follows the group’s full-year results last month when the company posted a drop in pre-tax profits to £1.6 billion for 2015, down from £1.8 billion a year ago. The blue-chip lender, bailed-out by the UK government during the financial crisis, however, recommended a final ordinary dividend of 1.5p per share, as well as a special dividend of 0.5p per share.
In other news, Deutsche Bank remains bullish on the FTSE 100 lender, reiterating its ‘buy’ rating on the stock today, with a price target of 83p.
As of 15:05 GMT, Tuesday, 08 March, Lloyds Banking Group share price is 71.01p.