Former Lloyds boss Eric Daniels is suing the bank with a former colleague for £1 million worth of unpaid bonuses.
Daniels, who was Lloyd’s chief executive during the 2008 financial crisis, left the bank in 2011 with a £5 million pension but claims he is still owed up to £500,000 in unpaid bonuses.
“Our current instructions are not to make any comment in response to media enquiries about the claim,” said Daniel’s lawyer, Tom Custance, a partner at Fox William.
A spokesman for Lloyds has said: “As this matter is a live legal issue, it would be inappropriate to comment.”
During his time at Lloyds, Daniels already had £1.45 million in bonuses taken from him following the PPI scandal, which has so far cost the lender £18 billion.
In 2013, Daniels stood by the PPI loans saying that Lloyds was “on the side of angels” and all loans had been given correctly.
The legal claims that have emerged this month come just as the British government have sold off the last of their shares in the bank. The government gained a small profit from the £20.3 billion it gave to the bank by taking a 43 percent stake almost ten years ago. Despite the profit, critics have argued the government’s break-even figure excludes the cost of debt taken to fund the original share purchases.
According to Ian Gordon, an analyst at Investec, there has been “significant progress has been made over the past eight years” since the bailout.
Daniels now works at Stormharbour, a London boutique investment bank. The former Lloyds boss also advises private equity group CVC Capital Partners.
A spokeswoman for Daniels has declined to comment on the legal case.