By Scott Wright

THE new boss of Lloyds Banking Group will receive a remuneration package that could be worth more than £5.5 million.

Charlie Nunn, global chief executive of wealth and personal banking at HSBC, was named yesterday as successor to Antonio Horta-Osorio, the Portuguese who led the bank’s recovery and return to private hands following the financial crisis.

The bank said Mr Nunn will receive a basic salary of £1.125m, a fixed share award of £1.05m per year, and flexible benefit funding of four per cent of basic salary. He will also be eligible for a maximum group performance share award of 140% of basic salary, worth up to £1.575m, and has agreed to limit the maximum award under the long term share plan to 150%, which could be worth £1.73m. Pension funding has been set at 15% of salary, down from the 33% Mr Horrta-Osorio received.

Mr Horta-Osorio received remuneration of £4.73m last year, including a salary of £1.27m, down from £6.54m in 2018.

Mr Nunn’s appointment comes as major banks grapple with the fallout from the coronavirus, which has depressed profits across the sector amid hefty provisions for rising loan defaults. Banks are under pressure from record-low interest rates, with Brexit also clouding the outlook.

Mr Nunn, who has held a range of senior roles with HSBC since joining in 2011, will work alongside a new chairman at Lloyds, with Robin Budenberg taking over from Lord Blackwell on January 1.

However, Mr Nunn’s starting date with Lloyds has still to be confirmed, with his current post with HSBC subject to a six month notice period and up to six months’ post-termination restrictions.

Lloyds said that chief financial officer William Chalmers will fill in as acting chief executive if Mr Horta-Osorio leaves before Mr Nunn is able to take up the post. The bank announced in July that the target was for Mr Horta-Osorio to step down by the end of June next year. Mr Nunn previously worked for Accenture and McKinsey & Co.