Notes to the consolidated financial statements
- « 46 Share based payments
- 47 Related party transactions
- 48 Contingent liabilities and commitments »
47 Related party transactions
Key management personnel
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of an entity; the Group's key management personnel are the members of Lloyds Banking Group plc group executive committee together with its non-executive directors.
The table below details, on an aggregated basis, key management personnel compensation:
|
2008 |
2007 |
|
|---|---|---|
|
Compensation |
||
|
Salaries and other short-term benefits |
8 |
15 |
|
Post-employment benefits |
1 |
4 |
|
Termination benefits |
– |
– |
|
Share based payments |
4 |
4 |
|
13 |
23 |
In addition, Mr Fairey retired as at 30 June 2008 and received his non approved benefit entitlement in the form of a lump sum in accordance with the scheme rules. A tax free amount of £4,523,000 was paid from the FURBS, with a further taxable amount of £2,446,000 made by the Group from provisions set aside. The total amount of £6,969,000 covered the Group's liability to provide benefits in respect of salary in excess of the earnings cap.
|
2008 |
2007 |
|
|---|---|---|
|
Share options |
||
|
At 1 January |
7 |
11 |
|
Granted (including options of appointed directors) |
– |
– |
|
Exercised/lapsed (including options of former directors) |
(5) |
(4) |
|
At 31 December |
2 |
7 |
|
2008 |
2007 |
|
|
Share incentive plans |
||
|
At 1 January |
6 |
4 |
|
Granted (including entitlements of appointed directors) |
3 |
2 |
|
Exercised/lapsed (including entitlements of former directors) |
(2) |
– |
|
At 31 December |
7 |
6 |
The tables below detail, on an aggregated basis, balances outstanding at the year end and related income and expense, together with information relating to other transactions between the Group and its key management personnel:
|
2008 |
2007 |
|
|---|---|---|
|
Loans |
||
|
At 1 January |
2 |
2 |
|
Advanced |
2 |
1 |
|
Repayments |
(1) |
(1) |
|
At 31 December |
3 |
2 |
The loans are on both a secured and unsecured basis and are expected to be settled in cash. The loans attracted interest rates of between 2.14 per cent and 34.01 per cent in 2008 (2007: 4.95 per cent and 30.0 per cent).
No provisions have been recognised in respect of loans given to key management personnel (2007: £nil).
|
2008 |
2007 |
|
|---|---|---|
|
Deposits |
||
|
At 1 January |
5 |
5 |
|
Placed |
27 |
21 |
|
Withdrawn |
(26) |
(21) |
|
At 31 December |
6 |
5 |
Deposits placed by key management personnel attracted interest rates of up to 6.0 per cent (2007: 8.0 per cent).
At 31 December 2008, the Group did not provide any guarantees in respect of key management personnel (2007: £6,154 in respect of one director).
At 31 December 2008, transactions, arrangements and agreements entered into by the Group's banking subsidiaries with directors and connected persons included amounts outstanding in respect of loans and credit card transactions of £3 million with eight directors and six connected persons (2007: £2 million with five directors and three connected persons).
Subsidiaries
Details of the principal subsidiaries are given in note 8 to the parent company financial statements. In accordance with IAS 27, transactions and balances with subsidiaries have been eliminated on consolidation.
Other related party disclosures
At 31 December 2008, the Group's pension funds had call deposits with Lloyds TSB Bank plc amounting to £23 million (2007: £23 million).
The Group manages 105 (2007: 107) Open Ended Investment Companies (OEICs), and of these 47 (2007: 40) are consolidated. The Group invested £455 million (2007: £1,961 million) and redeemed £343 million (2007: £1,526 million) in the unconsolidated OEICs during the year and had investments, at fair value, of £2,661 million (2007: £2,233 million) at 31 December. The Group earned fees of £206 million from the unconsolidated OEICs (2007: £200 million). The Company held no investments in OEICs at any time during 2007 or 2008.
The Group has a number of associates held by its venture capital business that it accounts for at fair value through profit or loss. At 31 December 2008, these companies had total assets of approximately £5,838 million (2007: £3,184 million ), total liabilities of approximately £5,780 million (2007: £3,182 million) and for the year ended 31 December 2008 had turnover of £2,088 million (2007: £2,136 million) and made a net loss of approximately £80 million (2007: net profit of £9 million). In addition, the Group has provided £825 million (2007: £609 million) of financing to these companies on which it received £46 million (2007: £23 million) of interest income in the year.