BANK of Scotland’s owner Lloyds has taken on Morgan Stanley investment banker William Chalmers as its next chief financial officer (CFO).

Chalmers is currently co-head of Morgan Stanley’s global financial institutions group, having joined the US firm in 2000.

Prior to joining the US bank, he spent six years working at multinational investment bank JP Morgan, where he was managing director

Chalmers is set to join Lloyds Banking Group in June, once current boss George Culmer retires.

The incumbent CFO said his seven years with the company have been “enough”.

LLoyds will pay Chalmers about £4.4 million in deferred cash to replace awards he will lose when he leaves Morgan Stanley, and he will be eligible for awards under the Lloyds share scheme.

His basic salary looks set to be £794,938, and he will also receive a fixed share award of £504,000, delivered over five years.

In his new role, Chalmers will have a pension allowance of 25% of his basic salary, and a benefits allowance of 4% of the salary.

Lloyds chief executive Antonio Horta-Osorio welcomed the announcement.

He said: “William has a proven track record in financial services and will be a great addition to the executive team.

“We will be sad to see George go, but are pleased to have had him in the team for the past seven years and to be able to have George and William working together to ensure a smooth transition.”

Lord Blackwell, Lloyds chairman, said: “We are pleased to have been able to attract a candidate of William’s calibre to the board. He brings a wealth of experience that will be of significant benefit to the group.”

Chalmers added: “I very much look forward to joining the executive team at Lloyds Banking Group. It is a tremendous company that is going through an impressive transformation. I look forward to getting started and making a contribution.”

Lloyds is currently in the midst of a £3 billion transformation programme.

The bank is due to publish full-year results on Wednesday.