Earlier this year, Mr Osório’s pension package was revealed to be worth almost half of his £1.3 million base salary, before it was trimmed to 33%. This number compared with 13% offered to the rest of the company’s staff.

If implemented, the cut would mean that Lloyd’s Banking Group’s contribution to his pension would be cut further, to 15% of salary from July next year.

The changes would also mean that the bank would also spend £20m to increase retirement benefits for the rest of its employees.

The Guardian reports that if the changes are approved, Mr Osório’s pension package would be cut by more than half to about £190,000. It is understood that the bank is not planning to raise other parts of his pay package to account for the loss.

Discussions over the chief executive’s pay highlight a distinct U-turn by the bank, who defended Mr Osório’s pay package only two months ago despite criticism from politicians, shareholders and city lobby groups.

A Lloyds spokesperson told The Financial Times: “In line with the regular three-year review of the group’s remuneration policy, we are consulting shareholders on all elements of the policy, including pension allowances.”