Lloyds Banking Group chief executive Eric Daniels will retire in twelve months time. The board is forming a committee headed by Sir Win Bischoff to conduct the search for his successor, the UK banking group said in a statement yesterday.

Daniels was at London-headquartered Lloyds for nine years and is currently on a £1.035 million (about $1.5 million) annual salary and can earn a maximum annual bonus of £2.33 million.

Media reports say Daniels is not expected to remain in post for the full year and that by announcing his intention to retire in a year, he has made sure he will be paid even if he leaves early.

Daniels' period at the helm of Lloyds has coincided with a traumatic time for the bank; in 2008, Daniels was involved in the purchase of rival UK lender HBOS, which was laden with bad debts. The takeover has been blamed for hurting Lloyds' share price and forcing it into the arms of the state, which now has a stake in the bank. Lloyds has a wealth management arm.