Lloyds exile Truett Tate is paid 656,000 for doing nothing
The row over bankers’ pay
blew up again last night after it
emerged that the head of
Lloyds 'casino-banking' arm
will pick up his 656,000 salary
for doing nothing.
Truett Tate, the investment
banking chief at state-backed
Lloyds Banking Group, will
receive 55,000 a month for the
next year despite not being
required to turn up for work.
The 61-year-old American is
the last of the ‘old guard’
involved in the disastrous
takeover of Halifax Bank of
Scotland which resulted in the
21billion taxpayer bailout for
Lloyds in 2008.
Shrinking City bonuses: Total payouts for this year are expected to fall to 4.2billion
Tate resigned from the board
yesterday – almost a week after
it emerged he would be retiring
from the bank with a farewell
package worth 4.8bn.
He will also receive a 160,000
contribution into his pension
as he serves out his 12 months’
notice period.
Insiders admitted that Tate
‘will not be required to be in
the building’ but it is not
known when he will go to the
office for the last time.
The bumper payout will be
seen by the public and many
politicians as another reward
for failure.
Emma Boon from the Tax-
Payers’ Alliance said: ‘Taxpayers
will be sick to the stomach
that Mr Tate can walk away
from his desk and not return
but still be paid his whopping
salary. Lloyds Banking group
is still a 41 per cent state-backed
bank so this comes out of taxpayers’
pockets.’
The news emerged as the
outcry over bonuses reaches
fever pitch.
Earlier this month RBS boss
Stephen Hester waived his 1m
bonus and his disgraced predecessor
Fred Goodwin was
stripped of his knighthood.
Total city bonuses for this
year are expected to fall to
4.2billion, according to the Centre
for Economics and Business
Research, a 38 per cent drop on
last year.
But RBS chairman Sir Philip
Hampton last week admitted
bankers’ pay was still too high
and needed to be corrected.
Tate’s lucrative pay-off echoes
that of former Lloyds boss
Eric Daniels who continued to
receive his 1million salary plus a
raft of executive perks – including
use of a chauffeur driven
car until September – a year
after he officially retired.
Daniels was one of the chief
architects of the HBOS takeover
which brought Lloyds to
its knees.
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