Lloyds poaches HSBC banker to be new CEO on £5.6m a year
Lloyds Bank has hired a new boss from HSBC.
(Getty Images)LLOYDS BANK today poached a top HSBC banker to be its new chief executive on a £5.6 million salary to replace the outgoing Antonio Horta -Osorio.
Charlie Nunn, a former McKinsey management consultant with a degree in economics from Cambridge University, will get “fixed” pay of £2.4 million a year, slightly down on his predecessor.
He will get shares to replace what he is giving up at HSBC – Lloyds declined to say how much – and a near immediate “lost opportunity” bonus. He also gets long term share plans worth up to £1.7 million a year and a group performance share award of £1.6 million.
Lloyds, which received a £20 billion bailout from the taxpayer in 2008 following a disastrous merger with HBOS, has paid Horta Osorio some £56 million since 2011.
Lloyds shares were today at 38p having halved in the last year.
Nunn joined HSBC in 2011 and became head of the retail banking and wealth management arm in January 2018. Wealth management is an area the already giant Lloyds has singled out for growth.
While Nunn’s pay might not raise eyebrows in banking, the public and some investors might be asking detailed questions about whether his awards are going to align with shareholders, especially as the UK is mired in a recession brought about by Covid-19.
Lloyds is seen as an almost perfect bellwether for the UK economy, since its fortunes are so closely tied together.
Nunn, 49, is married with four children and is said to like cycling, running and squash.
Like all banks, Lloyds has been biffed by low interest rates that have hurt profit margins. It has cut thousands of jobs in response, a move that unions dubbed “shameful” given how hard staff had worked to support customers during the pandemic.
The drive to cut costs is likely continue under Nunn. One City analyst said: “His main job will be to carry on ripping out costs to offset endless pressure on revenues from lower interest rates.”
He said: “I feel particularly lucky to be joining Lloyds Banking Group at this important time.
“Lloyds’ history, exceptional people and leading position in the UK means it is uniquely placed to define the future of exceptional customer service in UK financial services.
“I look forward to building on the work of Antonio and the team and their commitment to helping Britain prosper.”
Robin Budenberg, incoming chairman of Lloyds from January, said: “I am excited about Charlie’s vision for Lloyds Banking Group, as well as his passion for and commitment to our purpose of helping Britain prosper.
“Given his career track record, he will bring world-class operational, technology and strategic expertise to build on the strengths of the existing management team. I look forward to welcoming him to the group.”
