Lloyds names governance champion Tony Watson as remco head

By Philip Aldrick, Banking Editor 558PM GMT twenty-two March 2010

Lloyds Banking Group

Tony Watson, a former arch senior manager of Hermes Pension Management, is to take over as authority of the arrangement cabinet from Wolfgang Berndt, who will retire at the annual assembly in May.

Mr Berndt came underneath glow progressing this year after determining that Lloyds arch senior manager Eric Daniels was entitled to his full �2.25m reward notwithstanding the bank"s �6.3bn loss. Mr Daniels chose to abandon the award.

Obama"s compensate tsar looks again at bank bonuses LandesBank moves to retard McCarthy & Stone bonuses Bradford & Bingley authority Richard Pym gives up �537,000 in compensate and bonuses RBS and Lloyds risk open recoil over bonuses, Mandelson warns Lloyds pounded after about-turn on C&G branches Sir Win Bischoff declared as Lloyds authority as Darling warns banks over lending

Mr Watson, 65, became one of the majority strident critics of outsize rewards for common boardroom opening during his time at Hermes, where he managed �36bn of grant account money.

A corporate governance champion, he helped harmonise a debate to force Prudential to embankment a argumentative reward intrigue in 2002 with the mantra that "performance should be the decding factor of pay".

The appointment is a acquire strengthening of Lloyds" arrangement cabinet at a time when senior manager compensate is underneath complicated scrutiny, quite at the banks. The preference was done by Sir Win Bischoff, Lloyds" new chairman, who is additionally on the committee.

Mr Berndt, 67, has been a non-executive given 2003 and was paid �100,000 last year. He pronounced "After 7 years with the group, I hold right away is the right impulse for me to move on and palm over shortcoming to Tony. I am assured he will move a good understanding to the purpose and serve rise the arrangement plan in conference with the shareholders."

Lloyds" greatest shareholder is the taxpayer, with a 41pc interest in the bank after injecting �20bn of rescue funds. Having been an romantic account manager, Mr Watson will be sensitive to the Government"s concerns.

Mr Berndt"s depart follows a fibre of non-executive changes given Sir Win"s attainment as he attempts to renovate the board.