Andy Hornby, former chief executive of HBOS, could be paid about £800,000 ($1.2m) a year in his new role as chief executive of Alliance Boots.

People familiar with the situation said Mr Hornby, who was confirmed as group chief executive of the private-equity owned retail and drugs distribution group on Monday, would be paid a basic salary of about £400,000, rising to about £800,000 including annual bonus.