Lloyds Banking Group has announced that it intends to increase its chief executive's bonus.
Under the plans, Eric Daniels will receive a long-term bonus of up to £2.83 million in the form of shares.
Lloyds is exceeding the previous cap of 200 per cent of Mr Daniels' salary in order to ensure its pay remains competitive.
The larger long-term bonus amounts to 275 per cent of the chief executive's £1.03 million salary.
Lloyds' long-term performance will determine whether the shares are awarded to Mr Daniels. This would require the organisation's share prices rising above 114 pence.
On top of the shares, Mr Daniels will receive his £2.3 million annual bonus, bringing his total pay packet to over £6 million.
Royal Bank of Scotland chief executive Stephen Hester could be awarded up to 400 per cent of his £1.2 million salary if the bank is successful in meeting certain targets.
