Of Special Interest


[x] [x]

4th November 2011

Lloyds Banking appoints acting CEO serving notice period

António Horta-Osório has taken temporarily leave of absence from his position as Lloyds Banking CEO. The bank statement refers to 'an illness' only and adds that he is expected to return before year end. Tim Tookey, CFO, will become acting CEO in his absence in addition to his regular duties.

Media sources immediately reported that Horta-Osório's absence was due to physical and mental exhaustion and the absence was on his doctor's orders. The leave of absence appeared to take the board by surprise. One announcement was made before trading started on Wednesday with no details of responsibilities in the CEO's absence, followed by a board meeting and the appointment of Tookey as acting CEO later the same day.

The newly appointed acting CEO is currently serving his notice at the bank and is due to leave no later than March 2012. He resigned in September to take up an appointment as CFO at Friends Life and was asked by Lloyds to work his full six month notice. Should Horta-Osório's return be delayed this would create a severe leadership problem for Lloyds Banking. Since taking up the role earlier this year Horta-Osório has replaced almost all of the senior management. Thus creating the lack of alternative interim candidates for the post. Tookey is understood to have been the leading internal candidate for the CEO position following the announcement of Daniel's retirement.