London — Lloyds Banking Group is  trimming the pension payout of CEO Antonio Horta-Osorio in line with rivals, according to a person familiar with the matter.

Britain’s largest mortgage lender is expected to cut its boss’s pension contributions by about half as it looks to raise the pay of its employees, the person said, declining to be identified because the information is not yet public. Horta-Osorio receives a pension allowance equivalent to 33% of his salary, compared to an average of 13% for the rest of the bank’s staff...