LONDON, Aug 3 (Reuters) – Lloyds Banking Group (LLOY.L: Quote, Profile, Research, Stock Buzz) has
started formal succession planning for its chief executive Eric
Daniels although no date has been set for his departure, a
person familiar with the situation has told Reuters
Breakingviews.

The process is a contingency planning exercise to identify
successors to Daniels in the event that he stands down, and the
board is not actively recruiting a new CEO.

Lloyds has retained a headhunter and held discussions at
board level, which have included Daniels and the head of human
resources. The aim is to complete the plan by the end of this
year.

Daniels, 58, has been heavily criticised over the bank’s
acquisition of HBOS, the UK mortgage lender, shortly after
Lehman Brothers went bankrupt in September 2008.

That deal led to the resignation of Victor Blank, the
chairman, amid pressure from shareholders including UKFI, the
government body which owns 41 percent of Lloyds.