The details of the salaries of top executives emerged as Rangers moved to seek voluntary redundancies from non-playing staff in a new bid to curb spiralling costs.
Mr Wallace, who was appointed in November, will receive 50% of his salary as his bonus if the club hits financial targets, while the other half is payable if he meets individual targets.
His salary will also increase by £25,000 a year from the date Rangers achieve promotion to Scottish football's top tier and will rise by a further £25,000 if the side qualifies for European competition.
In addition, Mr Wallace also receives a £15,000 a year car allowance, pension contributions equivalent to 10% of his base salary and private health insurance for him and his family.
The figures reveal chairman David Somers is paid £60,000 per year while non-executive director Norman Crighton receives a salary of £40,000. Shareholder Sandy Easdale was due to be paid £50,000 a year but has not taken any payment while director James Easdale waived his remuneration for the year and paid back last year's fees of £12,000 in January.
The influential Union of Fans group last night expressed concerns over the contract agreed with Mr Wallace. A spokesman said: "The level of salary is in line with previous chief executives. Whether that's too high for a Rangers CEO is up for debate. From the position the club finds itself in, it seems high.
"But the bonus is the most important thing here. We don't know what the targets he has to hit are. If they're at the discretion of the board, which they appear to be, we find that worrying."
Any bonus payments to Mr Wallace are understood not to be linked to performance on the pitch. Sources insisted his payment package compared favourably with previous senior executives at the club and was reasonable given his responsibility for the day-to-day running of the company.
Last month, Mr Wallace faced calls from the Union of Fans to disclose whether there was still a "bonus culture" at the club. It came after criticism of bonuses given to former chief executive Charles Green and ex-finance director Brian Stockbridge. Mr Green received a £360,000 annual salary with a bonus of the same size for on-pitch performance while Mr Stockbridge eventually paid back a £200,000 bonus paid to him after Rangers won the third division title.
Meanwhile, the move to seek voluntary redundancies came as part of a new drive to cut costs after a business review revealed Rangers had blown £70 million in 18 months, much of it raised by fans buying into a share offering. No ceiling on the number of possible redundancies has been confirmed.
A source said: "The club is committed to engaging in a consultation process with staff in all affected business areas to determine if any reductions in our workforce can be achieved on a voluntary basis."
The review initiated by Mr Wallace revealed the first-team squad had "the second-highest wage bill in Scottish football for a team in the third tier". The club said the £10.4m player wage costs over 18 months were "well in excess of the level it should be primarily due to generous and poorly structured contracts awarded to some players when they originally joined the club".
However, Rangers say the ability to influence the composition and cost of the squad in the short term is limited because of "existing contract periods and terms".
A Rangers spokesman said executive pay at the club was fair and in line with contracts held by senior executives at other major football clubs and "comparable organisations" in the UK. He added: "Employing key executives of the appropriate calibre are vital to the Board's strategy to both reposition Rangers at the top of Scottish football and to compete regularly in Europe. We are delighted to have a board made of up of such experienced professionals. All pay and bonuses are structured to meet AIM requirements and institutional investor guidelines (ABI and NAPF).
"Bonuses are decided by a remuneration committee chaired by director James Easdale, who this year waived his entitlement to receive fees and repaid to the company £12,640.34 in fees he received in the last half of 2013 when was appointed a director. Mr Sandy Easdale has never received any fees.
"The remuneration committee is responsible for setting and reviewing executive remuneration within the context of the company's overall corporate performance. It reviews base salary with reference to a relevant market-competitive level and actual total rewards at a level to reflect the performance of an individual and the company as a whole."