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Head of Lloyds Bank’s retail arm gets shares worth £2.3m

Lloyds Banking group will awards Alison Brittain more than 7.6m shares in three instalments if she meets performance targets

Bailed out Lloyds Banking Group has handed the new head of its high street banking arm, Alison Brittain, more than 7.6m shares – worth £2.3m – to buy her out of performance related deals at Spanish bank Santander.

She was forced to stay at the UK arm of the Spanish bank until this month “to ensure an orderly transition” to her successor even though Lloyds announced her recruitment in March.

A stock exchange announcement by Lloyds shows the cost of recruiting her from the Spanish bank, from which the new Lloyds chief executive António Horta-Osório, has recruited many members of his top team.

The 7.6m of shares are awarded in three tranches. The first 1.2m are hers regardless of performance provided she stays until January 2014. She will get a further 612,153 if certain performance criteria – which Lloyds did not disclose – are achieved by June 2013 while the largest portion, some 5.9m, will vest in December 2012 provided performance criteria are achieved.

It is costing Lloyds up to £4.6m to buy Horta-Osório out of his previous deals at Santander after he was handed 6m shares – which payout over three years – and £516,000 in cash. Other executives he brought with him from Santander have cost £2.3m to buy out of previous pay deals.

Brittain was recruited by her former boss after Helen Weir announced her departure shortly after Horta-Osório took the helm of the bailed out bank in March. Unlike Weir, Brittain does not sit on the board of Lloyds but her signing on deal is disclosed because she is sufficiently senior for her share awards to be made public. Her salary and bonus packages have not been announced.

Santander hired Charlotte Hogg, the daughter of former Conservative minister Douglas Hogg, to replace Brittain. Hogg was hired from the credit checking business Experian where she was head of UK and Ireland.

It is thought that the performance criteria attached to Brittain’s share awards are based on those she was assessed on at Santander. © 2011 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds