Robin Budenberg, a senior investment banker at UBS, is to become chief executive of the body that oversees the taxpayer’s multibillion-pound stake in banks.

His appointment to the role at UK Financial Investments (UKFI) will make Mr Budenberg one of the most high-profile figures in the City. An announcement may come today.

The career investment banker will replace John Kingman, the Treasury mandarin who is leaving UKFI for the private sector. Mr Kingman is set to join NM Rothschild, the advisory firm.

Mr Budenberg has beaten John Crompton, head of capital markets at UKFI, to the top job. Mr Budenberg’s pay is to be disclosed. Mr Kingman’s annual salary was £143,000.

In good years Mr Budenberg could be expected to earn several million pounds a year with UBS.

Salary was a hurdle in the process leading to the appointment of Mr Budenberg because the Treasury, which is in charge of UKFI, was worried that a large pay packet would attract criticism. One of UKFI’s roles is to challenge banks over their remuneration policy.

Mr Budenberg will join UKFI at a time when it is increasingly in the spotlight. Its mandate is to sell to the private sector the state-controlled 70 per cent holding in Royal Bank of Scotland and 43 per cent stake in Lloyds Banking Group when it believes it can make a profit for the taxpayer. It is also responsible for the nationalised mortgage book of Bradford & Bingley and will take on Northern Rock imminently.

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