Taxpayer body approves pay at Lloyds after Blank’s exit

The government body which looks after the taxpayer's stake in bailed-out UK banks today gave its backing to the Lloyds Banking Group board after the ousting of chairman Sir Victor Blank.

UK Financial Investments said it will support proposals by the board of Lloyds, which is 43%-owned by the state, at the bank's annual general meeting in Glasgow on Friday.

It allayed fears of a shareholders' revolt at the meeting and came after Blank agreed to stand down as chairman last month under pressure from UKFI.

Blank appeared to take the blame for the disastrous takeover of HBOS by Lloyds TSB which he stitched together with chief executive Eric Daniels and Gordon Brown last year.

Earlier this year UKFI used its 70% stake in Royal Bank of Scotland to vote down the £700,000-a-year pension award to disgraced former chief executive Sir Fred Goodwin.

It was thought it could vote against Blank's re-election to the board of Lloyds and its executive pay. But John Kingman, chief executive of UKFI, today said: "UKFI has made clear that we fully support the Lloyds board, strategy and executive team led by Eric Daniels. We have decided to vote in favour of all resolutions at the forthcoming AGM."