HBoS chiefs' bonus down

ANNUAL bonuses for some of banking giant HBoS's most senior executives have shrunk following the downturn in the financial sector.

Britain's biggest mortgage lender said it will not pay any cash from its latest long-term incentive plan (LTIP), while the annual bonus pool fell from 69 per cent of executives' salary to 46 per cent.

According to the group's annual report, the LTIP for 2005-2007 did not pay out as the bank did not exceed the sector's average total shareholder return (TSR). To receive a 100 per cent bonus, the bank must achieve a TSR three per cent above its peers. From this year, the requirement will drop to 1.5 per cent to reflect "the new reality" of earnings growth.

Chief executive Andy Hornby earned £1.9 million in 2007.