António Horta-Osório, the Portuguese-born Lloyds Banking group chief executive, received a welcome package worth close to £13.4m for joining the bank taxpayer-supported bank, it has been revealed.

The £13.4m includes a signing-on fee of £6m worth of shares, a series of payments to be granted over the next three years, which could be close to £4.6m, and a pension scheme to which £800,000 will be paid yearly for the next five to six years. Horta-Osório will also be able to receive up to 50 per cent of his salary as part of his pension scheme, which is double what most Lloyds executives usually get for their pensions.

Horta-Osório's salary was set at £1.06m a year, while his bonuses can reach a maximum of £2.4m. He has already received a pay-rise, since joining Lloyds from rival bank Santander in November. His contract also includes a long-term incentive plan which could quadruple his salary to close to £4.5m pounds.

The Labour think tank Compass branded the sum a "disgrace". Another reaction came from Liberal Democrat peer, Lord Oakeshott, who stated taxpayers would be "appalled" at the possibility of paying someone "£5000 a day, just for turning up at the office for the next three years". Taxpayers still own 41 per cent of Lloyds banking group.

The bank's annual report also shows that Lloyds spent nearly £2.3m on recruiting new management. Other announcements include raises for boardroom staff - the first since the beginning of the crisis - and a raise in the maximum bonuses to staff outside the boardroom, five of which have been paid between £1.4 and £4.8m last year.

The report stated that the bank would be "subject to stretching performance targets which, if met, will deliver very significant benefits to the UK economy and ultimately all taxpayers".