Philip Harrison, 53, will start later this year on a basic salary of £400,000, plus pension and benefits. He will also receive compensation for loss of incentives at his former firm.

The announcement comes just days before Balfour finally discloses the outcome of an investigation into the accounts of its UK construction arm.

Harrison will join soon after Hogg Robinson’s results in May and replaces Duncan Magrath, who announced he planned to leave last November after six years in the role and a string of profit warnings.

Harrison has been at Hogg Robinson for two years and before that spent three years as group finance director at VT Group prior to its acquisition by Babcock International.

Group chief executive Leo Quinn said: “We are delighted to have found and attracted a candidate of Philip’s experience and calibre and he will be joining a leadership team committed to restoring Balfour Beatty to strength.

“His strong understanding of businesses that bid and deliver major contracts globally and his track record in embedding strong financial controls across complex companies are essential in our drive to improve cash generation and reduce overheads.”

“At the same time, the board would like to thank Duncan Magrath for his continued commitment and support until the appropriate handover is concluded.”

Quinn added the search for a new chairman was progressing well and an announcement will be made in due course.