The embattled boss of Lloyds has taken a £3.2million pay cut following a year in which he was caught having an affair on a business trip.
Antonio Horta-Osorio took home £5.5million last year, down from £8.7million in 2015.
His bonus fell despite the bank posting its best results for a decade, with profits doubling to £4.2billion.
This performance allowed it to give £2.2billion to investors with a dividend of 3.05p per share – likely to be a boon to the 2.5m people who hold the stock after years in which the bank struggled.
The average retail investor with 6,000 shares will get around £183.
Costly: Lloyds boss Antonio Horta-Osorio, pictured with his wife Ana, took home £5.5m last year, down from £8.7m in 2015
But the successful turnaround risked being overshadowed by revelations about 53-year-old Horta-Osorio’s private life.
The Portuguese, who is married to wife Ana, made headlines last summer after he was joined on business trips to Singapore and San Francisco by top academic Dr Wendy Piatt, 46.
Horta-Osorio racked up £3,276 during his Singapore stay, with £550 spent at the hotel spa, and Piatt was seen entering and leaving his suite with her own key.
Yesterday, Lloyds chairman Lord Blackwell tried to draw a line under the scandal.
Asked if he wanted to discuss the board’s response, he said: ‘No. We dealt with that at the time.
‘Antonio didn’t breach any company rules, he didn’t breach the company expenses policy and the matter is now closed.’
Lloyds said Horta-Osorio’s pay cut was chiefly down to share price performance, as the stock plunged after the Brexit vote.
Horta-Osorio was joined on business trips by academic Dr Wendy Piatt (pictured)
His long-term bonus plan paid out £1.6million in 2016, down from £5.2million the previous year.
The boss also took home a £900,000 fixed share award, designed as a salary top-up to beat the European Union’s bonus cap.
He pocketed £143,000 in benefits such as life insurance and a car allowance, and £568,000 towards his pension. His annual bonus rose from £850,000 to £1.2million thanks to improved profits.
He also took a 6 per cent rise in his base salary, which increased to £1.1million, Next year it will rise by another 8 per cent – more than the 2 per cent given to the rest of the bank’s staff.
Bosses said that the chief executive’s pay had been frozen for several years as the bank fought to free itself from Government control after its £20.3billion bailout, while other employees’ earnings had risen.
Less than 5 per cent of the bank is now owned by taxpayers, and it is likely to be fully back in private ownership by the end of May.
David Hillman, of the Robin Hood Tax campaign, said: ‘Lloyds chief Horta-Osorio must be laughing all the way to the bank.
‘It’s high time the Government did something about this flawed and unfair culture of rewards.’
Lloyds’ bonus pool for staff rose 11 per cent to £393million and it set aside £2.1billion to compensate for bad behaviour.
This included £1billion to cover PPI mis-selling, taking its bill for the scandal to £17billion.
Traders welcomed the profit figures yesterday, sending shares up 4.4 [per cent, or 2.9p, to 69.7p.
Laith Khalaf of Hargreaves Lansdown said: ‘Lloyds is returning to full health after being knocked for six by the financial crisis, since which time the bank has become safer, more profitable, and a good source of dividends for shareholders.’