DEREK LLAMBIAS will take on the Rangers chief executive's role at half the salary of his predecessor.

Llambias, who was confirmed in the job yesterday after it was exclusively revealed in The Herald on Tuesday, will be paid around d £150,000 as he replaces Graham Wallace, the chief executive who left in October.

However, Llambias, an associate of Mike Ashley, owner of Newcastle United, is believed to have been offered a substantial bonus for progress for Rangers on and off the field.

''Ashley does not pay huge salaries,'' said an informed source last night. ''But he does reward success with bonuses that range into seven figures.''

The cut-price salary will protect Llambias from criticism over costs and circumvents any shareholder move to reveal his wages ahead of the annual general meeting on Monday.

Llambias, 58, a former managing director of Newcastle United, joined Rangers' board as a non-executive director in November.

Rangers and Ashley faces charges from the Scottish Football Association over his influence at the club with a disciplinary hearing scheduled for January.27

The appointment of Llambias was officially announced to the Stock Exchange yesterday morning with the Rangers statement saying: ''In line with the cost-cutting exercise announced on 12 November 2014, Mr Llambias's remuneration will be significantly lower than previously offered for this position."

David Somers, who was operating as interim chief executive, will now revert to his previous role as non-executive chairman.

Somers said: "I am delighted that Derek has agreed to step up to the chief executive role. This is a successful outcome to the process, announced on 27 October 2014, which involved interviewing a number of high-calibre candidates.

"Derek has impressed us with his grasp of the issues since joining the group and brings a wealth of experience.''