Now give up your 240,000 pension, angry Lloyds shareholders tell ex-bank chief Andy Hornby who presided over disastrous rescue of HBOS


Now give up your 240,000 pension, angry Lloyds shareholders tell ex-bank chief who presided over disastrous rescue of HBOSHBOS saddled with 238billion of debt had to be bailed out by LloydsCampaigners say pension should be paid to ordinary investors who lost outLloyds had to be bailed out with 20.5billion of taxpayers’ money in October 2008, weeks after its takeover rescue of HBOS

By
James Salmon

PUBLISHED:

23:51 GMT, 10 April 2013

|

UPDATED:

01:26 GMT, 11 April 2013

Lloyds shareholders called for former HBOS chief executive Andy Hornby to give up his gold-plated 240,000 pension

Lloyds shareholders called for former HBOS chief executive Andy Hornby to give up his 240,000 pension

Furious Lloyds shareholders last night led calls for disgraced former HBOS chief executive Andy Hornby to give up his gold-plated pension worth more than 240,000 a year.

Campaigners said the pension should be paid to ordinary investors who have seen their nest eggs devastated after Lloyds’ disastrous takeover rescue of HBOS in 2008.

The spotlight has switched to Mr Hornby and former chairman Lord Stevenson, after Sir James Crosby asked on Tuesday to be stripped of his knighthood and issued a public apology for the debacle.

Sir James, who was chief executive of HBOS before Mr Hornby, was accused of being the ‘architect’ of the lender’s implosion in a devastating report published by the banking commission last week.

The 57-year-old also offered to give up 30 per cent of his 580,000 a year final salary pension, or around 175,000, which he hopes to give to charity or to Lloyds shareholders.

Last night pressure was mounting on Mr Hornby to give up some of the huge pension he amassed in less than eight years at Halifax and HBOS, formed when Halifax and Bank of Scotland merged in 2001. Sir James, Mr Hornby and former chairman Lord Stevenson were all accused of ‘catastrophic failures of management’ which led to the collapse of HBOS. Lloyds had to be bailed out with 20.5billion of taxpayers’ money in October 2008, weeks after its disastrous rescue.

Adrian Lithgow, from Lloyds Action Now – a campaign group battling to secure compensation for 7,500 Lloyds shareholders – said: ‘Crosby clearly feels the shame of destroying one of Britain’s finest institutions. It is up to others, like Hornby, to now follow his example. He should give up his pension and divert this money to shareholders who have suffered hugely as a result of his actions.’

While Sir James has been forced to quit lucrative board positions since last week’s report, Mr Hornby is clinging on to his role as chief executive of bookmaker Coral, where is thought to receive more than 500,000 a year.

He also has a huge retirement nest egg, courtesy of HBOS, where directors enjoyed a final salary pension more generous than that given to MPs, and similar to that of the governor of the Bank of England.

Lord Stevenson

Former Halifax chief executive Sir James Crosby was accused of catastrophic failures of leadership at the bank, which was brought to the verge of collapse by reckless lending levels, the damning report said

The spotlight has switched to Mr Hornby
and former chairman Lord Stevenson (left), after Sir James Crosby (right) asked on
Tuesday to be stripped of his knighthood and issued a public apology for
the debacle

This allowed Mr Hornby to accumulate an annual pension worth 240,000 in less than eight years after joining Halifax in 1999.

By
the time the 46-year-old Yorkshireman is entitled to his full pension,
at 55, it could be worth around 390,000 a year. An ordinary saver would
have to amass a pot of 13.5million to achieve this, according to
experts.

Paul Moore, former
head of risk at HBOS, who was sacked shortly after raising concerns
about reckless lending at the bank, said: ‘Hornby must follow the
example set by Crosby and give up this pension – although 30 per cent is
not enough.’

Coral last night reiterated its backing for Mr Hornby.

crosby's knighthood forfeit.jpg

Bailed out: During the financial crisis in 2008, HBoS  saddled with 238billion of debt  had to be rescued by Lloyds

During the financial crisis in 2008, HBOS, saddled with 238billion of debt, had to be rescued by Lloyds