Profits fall but Lloyds boss pockets pay rise

LLOYDS TSB chief executive Eric Daniels' pay package soared nearly 80% in 2004 although the High Street banking group's underlying profits rose by just 10% and pre-tax profits fell.

Daniels, who took the hot seat in the summer of 2003, enjoyed a 26% rise in his basic salary from £596,000 to £750,000. His bonus shot up from £258,000 to £960,000.

In 2004 Daniels took a 16% pay cut. Next year, his basic pay will go up by another 10% to £825,000.

Daniels is the bank's best-paid director, closely followed by deputy chief executive Michael Fairey whose total package rose from £1.24m to £1.48m.

Fairey has taken on temporary responsibility for UK retail banking following the departure last week of Pete Ayliffe, whose pay-off has not been revealed. However, he was on a 12-month contract and paid a total of £588,000 last year.

Philip Hampton, the former finance director who left abruptly in January 2004 and now chairs Sainsbury's, got a £342,000 pay-off.

The pay-off to Michael Ross, ousted as chief executive of the Scottish Widows subsidiary in September 2003, was revealed today because he continued to earn a bonus during his notice period even though he had left the group. He collected a £332,000 bonus and £356,000 for loss of office.