Lloyds Freezes Top 1,000 Exec Pay in 2012, May Appoint Two Directors Next Month

Lloyds Banking Group Plc (LLOY), Britain's biggest mortgage lender, is making a new move to appease political and shareholder anger over executive pay. The bank's 1,000 most senior managers will see their salary frozen in 2012, including Chief Executive Officer António Horta-Osório, who just returned from medical leave last week, the Financial Times reported.

The state-backed bank will not lower the pay for its customer-facing staff -- who make up the majority of Lloyds' workforce -- and might instead give them a pay rise.

In June, the bank announced it will cut 15,000 jobs and reduce costs by an additional 1.5 billion pounds ($2.4 billion) as it reduces international presence and increases its U.K. focus.

Lloyds Chairman Win Bischoff, who turns 71 next year, may announce his retirement at the company's 2013 annual meeting, the Telegraph reported.

Lloyds may appoint two new non-executive directors as soon as next month, and the appointments are in the final stages of approval with the Financial Services Authority, according to the report.