PPI Claims ’to Make Banks Think Twice’ About Annual Bonuses
The PPI claims scandal has made banks reconsider giving big bonuses to top executives.
The cost of dealing with payment protection insurance (PPI) by customers is making banks think twice about giving top executives big bonuses this year, it has been suggested.
It was recently revealed that Lloyds Banking Group is considering taking back some of the £1.45 million bonus paid to former chief executive Eric Daniels earlier this year, after posting a loss for the first quarter of 2011. This loss was largely down to the £3.2 billion set aside to cover compensation for mis-sold PPI policies.
According to reports, as much as one half of Mr Daniel’s bonus may be taken back, which is thought to be the first time a UK bank has considered withholding a payment of this kind.
A spokeswoman for the firm stated: “As part of an ongoing process, the implications on compensation are being considered by the remuneration committee and will be determined by the board in due course, in line with the FSA code on compensation.”
Commenting on the news, Simon Thompson, managing director at PPI claims specialist Precision Claims, said: "We at Precision Claims think it’s only right that the banks should consider the withdrawing bonuses they give to employees past and present, especially if the mis-sold PPI scandal was allowed to happen on their watch.
“Times are extremely hard for Britons at the moment - particularly for those who have had money taken from them unfairly by the banks - and their needs deserve to be prioritised above those of top executives of financial institutions.”
A number of banks were found to have mis-sold PPI policies to customers over the past 18 months, by either adding the insurance to an agreement for a loan, mortgage or credit card without the customer’s knowledge or telling them the product was obligatory.
ABOUT PRECISION CLAIMS
Precision Claims specialises in PPI claims, as well as personal injury and care home claims. For more information about the firm’s services, visit its website at http://www.precisionclaims.co.uk
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- Precision Claims
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