Pawlenty, the former Minnesota governor who was on the short list of candidates to be Mitt Romney’s vice presidential running mate, will replace Steve Bartlett, who earlier this year announced he was leaving his post as the group’s president and chief executive officer. Bartlett is a former member of Congress and mayor of Dallas.

Pawlenty will earn $1.8 million annually as head of the Roundtable, according to a person with knowledge of the compensation package. Bartlett received $1.8 million in total compensation in 2009, according to the group’s most recent publicly available tax records.

Pawlenty will take over effective Nov. 1.

“My work with Mitt has been a privilege.” Pawlenty said in a statement released by the campaign Thursday. “As the campaign moves into the home stretch, he has my full support and continued faith in his vision and his policies.”

Pawlenty said he informed the Romney campaign a “couple of days ago” of his decision and that as a condition for employment at the Roundtable, he has also agreed not to take a position with a possible Romney administration.

The Roundtable is one of a handful of Washington groups, including the American Bankers Association and the Securities Industry and Financial Markets Association, that are lobbying financial regulators as they implement the 2010 Dodd-Frank Wall Street reform law.

The groups often coordinate efforts but they also are competitors when it comes to establishing which one is the voice of the banking and financial services industry in Washington.

Pawlenty would immediately elevate the Roundtable’s profile in political circles.

Members of the Roundtable are scheduled to meet Thursday afternoon with Treasury Secretary Timothy Geithner to discuss the economy, according to a release from Treasury.

Pawlenty dropped out of the 2012 presidential race in August 2011 after his campaign failed to gain traction and soon after he endorsed Romney. On the campaign trail, Pawlenty emphasized a populist message and his Midwestern blue-collar roots, themes not often associated with a lobbying group that represents financial giants.

In brief remarks Thursday at the Roundtable’s headquarters in Washington, Pawlenty highlighted his tenure as governor of Minnesota as proof that he is an executive capable of dealing with the competing interests and dynamics found in the financial services industry.

“I’m excited about the opportunity and the challenges that lay ahead for the financial services industry and the opportunity to lead the dialogue and the discussion on behalf of the Roundtable,” he said. “The best way that this industry can continue to restore its reputation is to have its members do responsible investing into businesses and communities in a way that yields positive economic results and economic growth.”

Aside from banks like JPMorgan Chase and Bank of America, the Roundtable also represents large insurance companies and some other big big players in financial markets.

The Roundtable, like other banking groups, is seeking to recover ground the industry lost when Dodd-Frank was enacted. Their efforts focus on trying to influence how regulators are drafting rules implementing the law as well as drumming up support on Capitol Hill for legislation that would soften its impact.

Pawlenty “is exactly the kind of leader we need to continue to improve our industry’s reputation, advocate firm-but-fair regulation and help maintain our global leadership of the financial markets,” said Tom Wilson, CEO of The Allstate Corp. and chairman of The Roundtable.

Romney, who passed over Pawlenty to choose House Budget Chairman Paul Ryan, R-Wis., as his running mate, called the former Minnesota governor “a dear friend.”

“He’s brought energy, intelligence and tireless dedication to every enterprise in which he’s ever been engaged, and that certainly includes my presidential campaign,” Romney said. “While I regret he cannot continue as co-chair of my campaign, his new position advancing the integrity of our financial system is vital to the future of our country.”

Jake Sherman contributed to this report.