£1.4bn loss for Northern Rock not stopping executive's bonuses
Feb 24, 2009 | Comments 0
Northern Rock has reported losses of £1.4 billon, but this still has not stopped plans of pay bonuses to senior executives. It seems that the bank is rewarding people for their failures; it seems strange that the UK government is allowing this to happen.
The bank had plans for a slimdown policy, but in a massive U-turn is now planning to spend £14 billion in 2009 and 2010 to more lending for customers. Northern Rock has said that 100 senior executives will be eligible for 2008 bonus scheme, they say that this is necessary so they can continue to recruit new people as well as hold on to the ones that they have already got.
Northern Rock chief executive, Gary Hoffman, has yet to put a figure on how much the bonuses will be, and did not comment on whether they will be capped at 10 per cent of their pay. Although he did add that, the bonuses would be paid in loan notes and could not be cashed until 2010.
Filed Under: Business News