Financial services organisation Lloyds Banking Group has cancelled its bonus payments for 2020 to deal with the financial constraints of the Covid-19 (Coronavirus) pandemic.
The organisation, which employs 65,000 staff, made the decision to cancel its bonus and pay reviews due to the £602 million tax loss that Lloyds Banking Group made, according to its half-year results for 2020.
The annual performance-related bonus payments were due to be paid to senior staff in November 2020. Additionally, members of the group executive committee have asked not to be considered for their group performance share payments for 2020.
However, Lloyds Banking Group has rewarded its junior employees for their hard work throughout the pandemic. The organisation paid a one-time cash reward of £250 to all of its junior staff. Additionally, as part of its ongoing commitment to recognise the support of its employees, in July, the organisation rewarded some of its branch employees an additional day of holiday, and a free meal to share with their loved ones.
Lloyds Banking Group is also extending its remote-working policy until Spring 2021 for 50,000 of its employees, due to health concerns surrounding the pandemic.
António Horta-Osório, group chief executive at Lloyds Banking Group, said: “At that time, the board decided, again in line with all other major UK listed banks, that until the end of 2020 we will undertake no quarterly or interim dividend payments, accrual of dividends, or share buybacks on ordinary shares in order to improve further our capacity to serve the needs of businesses and households through the extraordinary challenges presented by the Coronavirus pandemic.
“These are difficult decisions and, while we recognise the disappointment and frustration this causes, in particular those relying on dividends for income, we agreed that this was a prudent and appropriate response to what were and are exceptional circumstances.
“As a thank you to our front-line employees we have including a cash payment for our junior employees, to recognise their continued significant contribution during the pandemic.”