#UK : “Taxpayers `Pay for CEO to Receive Massive Bonus’ under Pretence of Growth”

#AceFinanceNews says “Lloyd’s `Chief Executive Officer’ takes $2.8 Million Bonus in Shares”

Published time: February 13, 2014 20:05
Antonio Horta-Osorio.(AFP Photo / Andrew Cowie )Antonio Horta-Osorio.(AFP Photo / Andrew Cowie )
The CEO of Lloyds Bank, Antonio Horta-Osorio, will get his bonus worth $2.8 million paid in shares vested in 2019. While the CEO insists the reward was fair as the bank is “back to normal”, critics call it a “kick in the teeth of hard-working staff.”

Antonio Horta-Osorio will get his reward on condition that the government will sell off a half of its remaining 33 percent stake, acquired during the bail out of the troubled bank, or if the share price will hold above 73.6 p – the average price paid by the Government when the bank was rescued.

The bank will also pay about $658 million in bonuses to its 91,000 employees, which marks a moderate growth from $608 million paid in 2012.

Horta-Osório said he was taking his bonus after the share price rose 70 percent last year compared with a performance of rivals of between a 12 percent rise and a 14 percent fall.

In 2013 Lloyds’ pre-tax profit stood at $690 million, the first time in the black since its $34 billion bailout.

“I came to Lloyds three years ago to fix this bank and help taxpayers get their money back,” said the Lloyds CEO. “We absolutely consider ourselves back to normal. It’s absolutely up to UKFI and the Treasury to decide how and when to dispose of those shares,” he said.

Horta-Osorio’s counterparts at Royal Bank of Scotland and Barclays rejected their 2013 bonuses.

Unions attacked Mr Horta-Osorio’s refusal to forgo his annual bonus.

Frances O’Grady, General secretary of the Trades Union Congress (TUC) said:“With Lloyds still owing billions to the taxpayer and the amount it has had to set aside for PPI [payment protection insurance] mis-selling rising by a whopping $3 billion (£1.8 bn), now is not the time for its chief executive to be taking a multimillion-pound bonus.”

The Unite union on Thursday criticized a 2 percent pay rise for staff at branches and call centers this year at Lloyds, which has cut more than 35,000 jobs since its bailout.

The union said the bonus was a “kick in the teeth to the taxpayer, and to hard-working staff who don’t know if they will be next in line for the chop from one day to the next”.

“Profits have doubled thanks to ordinary workers doing extraordinary work behind the scenes to turn the bank around but they have been rewarded with an insulting 2 percent pay deal – the lowest pay deal of the big four banks so far,” the Unite union national officer Rob Macgregor said.

The share price change let the government sell off 6 percent of its stake in September and there are expectations that a further 33 percent sale could begin after the annual report is published on the 6th of March, as the bank said it was ready to return to private ownership.

Courtesy of RT

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#acefinancenews, #frances-ogrady, #lloyd, #lloyds-bank, #royal-bank-of-scotland, #trades-union-congress

Sell-Out of Tax Payers – As Sell-Off of Lloyds Bank – To Large Investors – Takes Place

English: Study on alternative investments by i...

English: Study on alternative investments by institutional investors. (Photo credit: Wikipedia)

Government sells 6 per cent of shares in Lloyds Banking Group, at 75p per share.

The government has today begun the process of selling part of its shares in Lloyd’s Banking Group. It has sold 6 per cent of the shares in the bank, at a price of 75p per share. A profit has been made from the sale, which will be used to pay down the national debt.

The Chancellor received advice from UK Financial Investments yesterday that it would be appropriate to begin the process to sell part of the government’s shareholding in Lloyd’s. The Chancellor agreed with that advice and authorised the process to begin.

Today marks an important step in the government’s plan for the recovery of Britain’s banking system.

The Chancellor, George Osborne, said:

I can confirm this morning that we have sold 6% of Lloyd’s Bank at 75p a share. That is a profit for taxpayers, and rightly so. The money will be used to reduce the national debt by over half a billion pounds.

This is another step in the long journey in putting right what went so badly wrong in the British economy; it’s another step in repairing the banks; it’s another step in getting the money back for the taxpayer; and it’s another step in reducing our national debt.

All of those things together are good news.

If you look at what has happened over the last 12 hours with Lloyd’s, you have investors from around the world investing in a British bank. That is a sign the British economy is turning a corner.

On the face of it this looks good for the tax payer  and couched in the correct way such as the return and the overall benefits, we could start to believe this government really cares about the use of tax payers money! The fact is look much deeper at the way it has been worded by our Chancellor and look at who will benefit and a very different story emerges! The actual shares are to be sold off or should l say offered to:

 Institutional investors are organizations which pool large sums of money and invest those sums in securitiesreal property and other investment assets. They can also include operating companies which decide to invest their profits to some degree in these types of assets.

Typical investors include banks, insurance companies, retirement or pension fundshedge fundsinvestment advisors and mutual funds. Their role in the economy is to act as highly specialized investors on behalf of others. For instance, an ordinary person will have a pension from his employer. The employer gives that person’s pension contributions to a fund. The fund will buy shares in a company, or some other financial product. Funds are useful because they will hold a broad portfolio of investments in many companies. This spreads risk, so if one company fails, it will be only a small part of the whole fund’s investment.

Institutional investors will have a lot of influence in the management of corporations because they will be entitled to exercise the voting rights in a company. They can actively engage in corporate governance. Furthermore, because institutional investors have the freedom to buy and sell shares, they can play a large part in which companies stay solvent, and which go under. Influencing the conduct of listed companies, and providing them with capital are all part of the job of investment management.

This will of course look to bolster the economy for the institutions and at the same time make the pension funds look more healthy for the beleaguered OAPS investments, which of course were decimated back in 2008, at the time of the financial crisis, brought on mainly by the banks and their risky lending policy, something that our previous Bank of England Manager would not sanction, but enter Osborne’s new replacement and all of a sudden, risky lending is back on the cards! Anyone uncertain of Mr Carney’s track record for taking risks read his policy in the Canadian Banking Industry and see what l mean!

So now we have what l can only term as a sell-out of the tax payer, having bolstered up the banks with the hard-earned tax payers funds, using infrastructure funds ,that should light our streets or renew our roads, and now the 4 year plan is completed! Oh yes also a split between the savings and retail arms of what was Lloyd’s TSB Bank Plc and now we have to distinct banks Lloyd’s Bank PLC and TSB Bank PLC, has also taken place, allowing any toxic assets to disappear, into the restructuring process!







UK Financial Investments:

Take a look at their site and view their pdf containing details of the sell-off you even have to agree not to use the information in the US, but visit here is a link to their site: http://www.ukfi.co.uk/

#acenewsservices, #sellout, #business, #economy, #economy-of-the-united-kingdom, #george-osborne, #government, #lloyds, #lloyds-bank, #lloyds-banking-group, #mutual-fund, #politics, #the-survivors-of-the-chancellor, #uk-financial-investments-limited