ROYAL Liver’s former chief executive Steve Burnett received a £310,000 payout when he left the company.

Mr Burnett left Royal Liver in August last year amid a restructure at the mutual insurer, which is now in merger talks with much larger rival Royal London and may quit the Royal Liver Building.

The group’s latest accounts revealed Mr Burnett received a total pay package of £615,429 for 2009, including “pay in lieu of notice of £310,000”.

Mr Burnett, who spent seven years at the helm of Royal Liver, also received a £49,414 bonus in March “in respect of his bonus payable for 2009 performance”.

Chairman David Woods said: “Steve stepped down in September, following seven years in which he initiated a re-focus on modernisation and expense containment with great commitment and belief.

“But changing times meant a change in emphasis for the society and therefore a change in leadership. We thank Steve for his contribution.”

That change in emphasis saw the group enter talks with Royal London.

Royal Liver managers said the move would ensure the interests of the group’s 1m members, who ultimately own the company, are protected.

The two parties have not yet agreed the detail of any takeover proposal, which could only go ahead if it won the approval of the 200 delegates who represent Royal Liver’s members.

But interim chief executive Bill Connolly said he expected jobs to go whether or not it is taken over.

If a takeover falls through, Royal Liver will have to stand on its own – but Mr Connolly warned it would then face “a major downsize” to save costs.

He said the group would then have to consider moving out of the three floors it occupies in the building and letting out the space, bringing in cash.

Mr Connolly said it was also uncertain whether Royal London would choose to keep staff in the building if the takeover went ahead.

He said the building will not be put up for sale because it is a key asset.

Royal Liver was hit hard by the recession, which made it harder for financial services firms to raise cash.