Bank CEO receives pay increase despite profit drop, branch closures
Lloyds Banking Group’s top executives are set to receive substantial bonuses despite a decline in profits, branch closures, and rising financial provisions.
The bank’s annual report confirmed that chief executive officer Charlie Nunn (pictured) will receive a £1.1 million bonus, while chief financial officer William Chalmers will be awarded £812,014. The bank’s remuneration committee stated that these payouts reflect the company achieving 68.1% of its performance targets in 2024.
Nunn’s total remuneration for 2024 amounted to £5.6 million, an increase from £3.7 million the previous year, primarily due to long-term incentive awards tied to Lloyds’ share performance. His pay package included a base salary of just under £2.5 million, an annual bonus of £1.1 million — down from £1.3 million in 2023 — and the first instalment of a share-based incentive worth £2 million.
Pay for Lloyds Bank’s top bosses jumps to £5.6m https://t.co/hwtO4tFHKi
— City A.M. (@CityAM) February 28, 2025
The pay increase came as Lloyds reported a 20% decline in annual profit to £6 billion, missing analyst expectations. However, the bank’s stock rose following the announcement of its financial results in February, after it outlined cost-cutting measures and plans to return more capital to shareholders.
Lloyds has been reducing costs by increasing automation, closing high street branches, and shutting some head offices. The group intends to close 136 more branches this year, alongside plans to shut offices in Dunfermline and Liverpool.
The bank also set aside an additional £700 million to cover potential compensation claims related to motor finance commission arrangements, adding to the £450 million already allocated in 2023. The UK’s financial regulator is reviewing so-called hidden commission agreements between car dealers and borrowers, with Lloyds’ Black Horse brand among the major lenders affected.
In a separate case, the bank was ordered to pay nearly £1 billion in tax after losing a legal dispute with HM Revenue & Customs (HMRC). A London tribunal ruled against Lloyds’ attempt to claim tax relief on losses linked to Irish property loans following the 2008 financial crisis.
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