The boss who led West Bromwich Building Society to huge losses walked away with more than £680,000 for just seven months work – it has been revealed.

Stephen Karle will also receive a £95,000-a-year pension when he reaches 65, according to accounts released by the society.

Mr Karle resigned as chief executive months, before losses of £48.8 million almost led to the collapse of the West Bromwich.

The revelations are set to pour fresh fuel on the row over bank and building society bosses being “rewarded for failure” – the most notorious case being former RBS chief executive Fred Goodwin, who eventually agreed to halve his £700,000-a-year pension to £342,500 last month after a public outcry.

In addition to his salary and benefits for the period of £166,000, the annual report reveals Mr Karle, aged 50, was paid: “£274,000 notice, £78,000 severance, £68,000 pension, £82,000 bonus and £18,600 in respect of other benefits.”

West Brom spokesman Brian Seymour-Smith said: “The payments to Mr Karle were made in accordance with external legal advice that the board received at the time of his resignation, and only those payments we were advised should be made.”

Mr Karle had worked for the building society for 12 years in a range of roles.