According to the BBC, the former chief executive Eric Daniels will lose between Ã‚Â£600,000 and Ã‚Â£700,000, as the bank prepares to take between 40% and 50% of a Ã‚Â£1.45 million bonus.
Three other board directors are expected to lose around Ã‚Â£250,000, while six executives that don’t sit on the board will have Ã‚Â£100,000 each clawed back.
Executives at the bank are being penalised for their role in the mis-selling of payment protection insurance (PPI), after the bank was forced to set aside Ã‚Â£3.2 billion for customers that were mis-sold.
Clawback arrangements were introduced in 2008, following pressure from politicians and the Financial Services Authority (FSA). This is the first time that a British bank has clawed back bonuses from executives.
The bank’s current chief executive Antonio Horta-Osorio turned down his bonus for last year.