Lloyds Banking Group reduced diversity targets which will impact on the annual bonus payments to senior staff as well as its entire employee base.
The decision of the British banking giant concerns its “group Performance Share” scheme, which is the bonus pot for 66,000 employees. It also pays out to its Chief Executive Charlie Nunn and its CFO William Chalmers.
Scorecards are used to link executive bonuses to bank performance. Diversity contributes 7.5%. The scorecard affects the total staff bonus pool which amounts to PS368 millions in 2024.
As in previous years the goal of diversity was to increase “gender and racial representation in senior positions”, which are defined as employees with a grade F or higher. According to the FTSE 100 company’s most recent annual report, this year the goal is to increase diversity in “executive positions”, which are defined as “grade X only” colleagues.
Lloyds has not disclosed the exact number of employees in grades F and higher.
According to reports, it is maintaining its diversity goals within its own ranks for grades F and up. Its decision to concentrate bonus targets on executive positions aligns with the FTSE Women Leaders Review supported by the government.
The company said it had not weakened its diversity goals, that it is still passionate about it, and “its 2025 aspirations remain ambitious”.
Lloyds Banking Group’s spokesperson stated: “Lloyds Banking Group has been a leader in diversity, equity, and inclusion for many years. In 2014, it was the first FTSE100 firm to set a gender goal to increase the number of women in senior roles. By 2024, women will hold over 40% of senior positions.
“Our commitment to diversity remains steadfast. After more progress was made in 2024 in building an inclusive workforce, led by senior leaders, we moved on to new ambitions, which better align with our strategic goals, and accelerate meaningful diversification in our leadership team starting in 2025.”
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