Ex-HBOS chief makes swift £2m at Boots

The former boss of rescued bank HBOS earned more than £2 million in pay and benefits for just nine months in his new job heading high street giant Alliance Boots, it emerged today.

Andy Hornby, who headed HBOS in the run-up to its near-collapse before its rescue by Lloyds TSB, was paid £1.68 million in salary, bonuses and benefits after joining as chief executive on July 1 - making him Boots' highest paid director.



He also landed a £400,000 "golden hello" as part of "joining arrangements" for taking on the top job, which earns him £850,000 a year in salary excluding bonuses, according to the group's annual report.



His pay to March 31 included a nine-month wage of £600,000, an £805,000 short-term bonus, £240,000 in pension entitlements and £34,000 in benefits.



Mr Hornby's pay dwarfed that of executive chairman Stefano Pessina, who led a mammoth £11.1 billion takeover of Boots three years ago backed by private equity group KKR.

Mr Pessina earned a £666,000 pay package, down from £701,000 the year before.



The part Mr Hornby played in leading HBOS to the brink saw his reputation called into question following the financial crisis, with the bank boss forced to defend himself in front of MPs alongside disgraced ex-Royal Bank of Scotland boss Sir Fred Goodwin.



But his job at Boots has seen a remarkable turnaround in fortunes, putting him in charge of a group with growing profits and expansion plans.



Boots last week reported profits above £1 billion for the first time.



The pharmacist and wholesaler posted trading profits of £1.07 billion in the year to March 31 - up 12.7% on a year earlier - helped by launches such as No 7 Protect & Perfect skincare.



Its UK revenues rose to £6.6 billion, with like-for-like sales growth of 2.4%.



Boots said in its annual report that pay levels for Mr Hornby and other directors were set with help from consultants and benchmarked against companies in the FTSE 100.



Its report added that total pay for directors was "below median" against its peer group.



Last year's annual bonus scheme allowed windfalls of up to 140% of salary, based on trading profit and personal performance.

News
peopleFrankie Boyle responds to referendum result in characteristically offensive style
Sport
Lewis Hamilton will start the Singapore Grand Prix from pole, with Nico Rosberg second and Daniel Ricciardo third
F1... for floodlit Singapore Grand Prix
Arts and Entertainment
'New Tricks' star Dennis Waterman is departing from the show after he completes filming on two more episodes
tvHe is only remaining member of original cast
Arts and Entertainment
tvHighs and lows of the cast's careers since 2004
PROMOTED VIDEO
Sport
Fans hold up a scarf at West Ham vs Liverpool
footballAfter Arsenal's clear victory, focus turns to West Ham vs Liverpool
New Articles
i100... she's just started school
News
news
News
ebooksAn unforgettable anthology of contemporary reportage
New Articles
i100
Life and Style
Couples have been having sex less in 2014, according to a new survey
life
Arts and Entertainment
musicBiographer Hunter Davies has collected nearly a hundred original manuscripts
Sport
football
New Articles
i100... despite rising prices
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Market Risk & Control Manager

Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...

SQL Developer - Watford/NW London - £320 - £330 p/d - 6 months

£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Head of Audit

To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...

Day In a Page

Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam