According to the Sunday Telegraph, the financial institution is currently involved in negotiations with insurer RSA over the early release of George Culner from his notice period.
The report claimed that the bank is considering making a payment of Â£6 million to secure his release from the 12 month period so the banker can take up his new role in the early months of next year.
Tim Tookey, the current chief financial officer at Lloyds, is due to leave Lloyds in February - he is currently working as interim chief executive officer (CEO) while Antonio Horta-Osorio is on a leave of absence.
Lord Oakeshott, the ex-Liberal Democrat Treasury spokesman, told the news paper that this would be irresponsible behaviour by Lloyds and âan insultâ to tax payers who still have a share in the bank.
âUK Financial Investments must get up off its knees at long last and insist on a vote of all shareholders before any contract is signed,â he said to the news provider.
Any fee paid would include some form of compensation to RSA.
By Jim Ottewill