Lloyds TSB chief takes a 16% pay cut

LLOYDS TSB chief executive Eric Daniels had a pay cut last year. The boss of Britain's fifth biggest bank took home 'only' £1.06m during 2003, some 16% less than he trousered during 2003.

The group's annual report shows he earnt a basic salary of £596,000 and a performance-related bonus during the year of £258,000.

He received other benefits worth £210,000 and had £347,000 paid into his pension, to give him a pot worth £711,000.

Lloyds TSB put the pay reduction down to a slightly lower bonus and lower benefits in 2003 than during his first year within the group. Deputy chief executive Michael Fairey received the biggest pay packet of £1.14m.

A salary of £498,000 and bonus of £208,000 was boosted by other benefits worth £434,000, including contributions to a separate pension fund, on top of the £977,000 paid into the group scheme.

Lloyds TSB recently reported pre-tax profits of £4.35bn, up 66% on last year, following numerous disposals. Shareholders were pleased the dividend was maintained but disappointed management decided to hang on to cash received from recent sales.

Daniel's pay compares unfavourably with the £3.9m paid recently to Barclays' chief executive Matthew Barrett.