For every mis-sold PPI Lloyds Banking Group is recompensing, its employees are losing £1,500 in salary and bonuses.
According to Lloyds annual report, without legal and regulatory costs from PPI, the bank could have had £124 million in profits. Its figures suggest that improved management of underlying assets could have brought good fortune to the bank. It would have bailed itself out of public stocks faster than necessary.
The staff would have received an average of £6,126, which would mean about £1,500 employees lost due to PPI.
“Despite better underlying results in 2015, the Group’s total bonus outcome has reduced year-on-year to £353.7m,” said Lord Blackwell in his statement to shareholders in the annual report.
“This includes a 26pc collective performance adjustment being applied to the total bonus outcome to reflect the additional conduct-related provisions which impacted negatively on profitability and shareholder returns.”
Cash bonuses are capped at £2,000 with the remainder in shares. Those share payments are delayed for several years, with the size of the final payout dependent on performance.
Chief executive Antonio Horta-Osorio’s overall pay package for the year fell to £8.8m, down from £11.5m in the previous year.
Other banks have also hiked their PPI provisions, in part because the City regulator is planning an advertising campaign followed by a deadline on claims, measures which are expected to lead to a surge in claims.