ORX News digest of the month – March 2018
- 9 April 2018
Every month the ORX News team publishes a featured digest from the ORX News Service. It's a detailed look at one of the losses reported in the media that month, and is handpicked by the team as one of the most interesting stories.
March's digest summary:
On 27 March 2018, the UK High Court of Justice ordered Lloyds to pay more than GBP 2.3 million (USD 3.2 million, EUR 2.6 million) worth of shares to two former executives over claims that the bank unlawfully withheld their bonuses.
John Eric Daniels, former Lloyds CEO, filed a lawsuit against Lloyds on 14 August 2017 in conjunction with George Truett Tate, a former wholesale and international banking director. The executives claimed that their bonuses were part of a long-term incentive plan (LTIP) linked to the successful acquisition of Halifax Bank of Scotland (HBOS) in 2009. The LTIP, introduced in 2006 and due in 2012, was dependent, amongst other performance conditions, on achieving synergy savings of GBP 1.5 billion by the end of 2011, conditions which were fully met by the executives.