Andy Hornby will take home a reported 60,000 a month to assist in the takeover of HBOS after the government's nationalisation of several High Street banks.
News of Hornby's appointment – and the massive salary he is being paid – provoked an angry response from MSP Alex Neil.
In a statement today, the Central Scotland MSP said: "If this is true, it stinks to the high heavens. Hornby is the chief negotiator for HBOS shareholders in the proposed takeover by Lloyds TSB.
"How can HBOS shareholders be sure that Hornby will try to get them the best deal in the takeover talks if he is getting paid such a huge sweetener by Lloyds TSB.
"I am writing to the Financial Services Authority to ask for an immediate enquiry.
"There is a clear conflict of interest here which calls into serious question Hornby's ability to meet his statutory judiciary duties to HBOS shareholders."