Barclays and Lloyds Banking Group are to pay their bosses nearly £1 million in share allowances each on top of salary and bonuses to defy new European rules to cap payouts.

Annual reports from the two banking giants showed Antony Jenkins, the Barclays chief executive, would be paid £950,000 over 2014 in quarterly instalments, while taxpayer-backed lender Lloyds said it would hand boss Antonio Horta-Osorio £900,000 in shares.

The allowances are designed to allow the banks to get around the EU bonus cap, which came into force on January 1 limiting annual payouts for 2014 onwards to 100% of annual salary, or a maximum of 200% with shareholder approval.

HSBC's annual report last week unveiled plans to offer boss Stuart Gulliver £1.7 million in fixed pay allowance to be awarded in shares on a quarterly basis, on top of his £1.25 million salary.

Barclays will ask shareholders to back payments up to 200% of salary, while also introducing its new role-based pay awards that mean staff can still pick up bumper handouts.

Lloyds will ask shareholders to back the maximum payout allowable under the rules. Despite calls for pay restraint, more staff at both banks earned over £1 million last year.