New Northern Rock chief lands mega pay deal

Source: Exec Digital UK

Date :23/07/2008 15:04:49

The troubled bank will pay its new chief executive, Gary Hoffman, nearly £2 million over two years to run the nationalised bank.

Hoffman will receive a basic salary of £700,000 plus three payments of £400,000 each, paid over two years, to compensate him for his loss of long-term incentives at Barclays, who he is leaving after 26 years.

He will also be eligible to take part in Northern Rock’s incentive scheme when it starts later this year.

Hoffman has been with Barclays since 1982, during which time he ran the Barclaycard business and chaired UK banking. He has been the banking group's vice chairman since 2006.

Northern Rock was forced to borrow more than £26 billion from the Bank of England last year after being unable to obtain funding in the wholesale market.