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Withholding CEO bonuses is not as easy as you think

Former Lloyds CEO's victory in court is a timely reminder that boards must make themselves legally watertight if they want to withhold executives' bonuses

Withholding CEO bonuses is not as easy as you think
Photo: Neil Webb

When companies announce big losses, it's not uncommon for shareholders, who often face their own heat from the public, media and politicians, to pressurise boards to withhold executives' bonuses and share awards.

In the banking world, still haunted by the ghosts of the financial crisis and its aftermath, it’s easy to see why boards would cave in to such pressure.

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