LONDON (Reuters) - The new finance chief of part-nationalised bank Lloyds (LLOY.L) could net nearly 6 million pounds in total pay, including compensation for forfeiting a bonus at his previous employer.
The salaries of top executives at Lloyds and rival Royal Bank of Scotland (RBS.L) have come under intense political scrutiny in Britain, since the government bailed out both banks during the 2008 credit crisis to the tune of 66 billion pounds.
Lloyds, which is 40 percent state owned after the bailout, said Culmer would take up his position on May 16. He joins from insurer RSA (RSA.L).
Culmer, 49, will get an annual salary of 720,000 pounds and a discretionary annual bonus of up to a maximum of 200 percent 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 time if he meets his targets.
Culmer will also get an allowance to fund personal pension arrangements worth 25 percent of his salary, taking his potential annual pay, bonus and benefits to 4 million pounds.
Lloyds will also compensate Culmer for deferred awards and a cash bonus he will forfeit after quitting RSA by giving him 1.9 million pounds' worth of shares, vesting in 2013 and 2014.
Culmer agreed to join Lloyds at the end of last year but had been involved in protracted negotiations over his start date.
Lloyds's previous finance boss Tim Tookey left the company last week to take on the same role at insurer Resolution RSL.L, leaving Lloyds without a finance boss for March and April.
CEO Antonio Horta-Osorio's finance team will manage those functions between now and Culmer's arrival in mid-May.
Reporting by Sudip Kar-Gupta; Editing by Myles Neligan and Will Waterman