£12m for Goldman's top banker in the UK

North London-born Michael Sherwood, one of the two co-heads of Goldman Sachs International (GSI) in London alongside Richard Gnodde, is believed to have landed the payout.

Goldman did not name the highest-paid director although it published his salary in its annual accounts filed at Companies House.

The accounts show that, despite the start of the credit crunch, pre-tax profits in the London-based operation soared fourfold to $2.74 billion in the year ending 30 November. In the previous year, pre-tax profits for GSI - which covers Europe, the Middle East and Africa - stood at $596 million.

Goldman's £12 million salary for its top London banker compares favourably with Barclays Capital chief Bob Diamond. It emerged last week that Diamond earned £6.8 million in salary and bonuses in 2007. However, Diamond's total package was worth more than £21 million as he collected a further £11.4 million from an executive share award and £3 million from a share performance scheme. It is possible that Goldman's Sherwood and Gnodde may have earned similar long-term "performance" bonuses that did not have to be declared.

Goldman chief executive Lloyd Blankfein picked up $53.9 million in compensation for 2007, as well as realising $45.7 million from the vesting of stock.

The Companies House filing says: "Directors also receive emoluments for non-qualifying services which are not required to be disclosed." It adds: "Certain directors of the company also received options over shares in the ultimate parent company which is registered outside the UK."

A spokesman for Goldman Sachs declined to comment. But in the filing Goldman defended its salaries. "Our ability to continue to compete effectively in our business will depend upon our ability to attract new employees and retain and motivate our existing employees."

The 10-strong board of GSI, led by BP chairman Peter Sutherland, collected a total of $47.7 million (£24 million) - an increase of almost 90% on 2006 when they earned $25.9 million.

The highest-paid director in 2007 earned almost as much as the entire board in 2006.

Europe, Middle East and Africa contributed 31% to Goldman's pre-tax profits in the year ending November 2007 - up from just 21% in 2006.