Lloyds’ new finance chief in running for £6m pay

THE new finance director of part-nationalised Lloyds Banking Group could net nearly £6 million in total pay, including compensation for forfeiting a bonus at his previous employer, it was revealed yesterday.

The largesse, set to stoke the politically-charged banking bonuses row, was announced as the group announced that George Culmer would be joining on 16 May from insurer RSA.

Lloyds, 40 per cent taxpayer-owned after a state bail-out in connection with its ill-starred acquisition of HBOS in 2008, said Culmer, aged 49, will get an annual salary of £720,000.

There will be a discretionary annual bonus of up to a maximum of 200 per cent of his salary. He can also get a long-term performance share award of up to 225 percent of his salary for 2012, which would vest in full in three years “if stretching performance targets are exceeded”, the bank said.

Culmer will get an allowance to fund personal pension arrangements worth 25 per cent of his salary, taking his potential annual pay, bonus and benefits to £4m.

Lloyds disclosed it will also compensate Culmer for deferred awards and a cash bonus he will forfeit after quitting RSA by giving him £1.9m worth of shares, vesting in 2013 and 2014.

He agreed to join Lloyds at the end of last year but became the centre of lengthy negotiations between the bank and insurer over his start date.

Previous finance director Tim Tookey left last week to take on the same role at insurer Resolution.

Chief executive Antonio Horta-Osorio’s finance team will manage the finance director functions between now and Culmer’s arrival.

The salaries of top executives at Lloyds and other bail-out beneficiary Royal Bank of Scotland have come under intense political scrutiny.