Northern Rock appoint new boss
July 25, 2008
Gary Hoffman has been appointed as the new chief executive of Northern Rock. Mr Hoffman will leave the position of vice chairman of Barclays for the position at Northern Rock.
He replaces the current chief executive Andy Kuipers, who is due to leave the bank on August 31 after 20 years.
Northern Rock was nationalised in February after the bank got into trouble in September when they were no longer able to fund the mortgage lending by borrowing from wholesale money markets.
Mr Hoffman will receive a basic salary of £700,000 plus three separate payments of £400,000 in compensation for the loss of his participation in Barclays long term incentive plans.
Mr Hoffman said of his appointment “This was a very tough decision for me. My affection for Barclays is deep and built over many years. Yet the opportunity to help lead Northern Rock back to strength is both compelling and exciting.
Since Northern Rock was nationalized they have said they will cut about 2,000 jobs by 2011 and are hoping to cut its residential mortgage lending by half.
Ron Sandler who was appointed by the government to run the bank as executive chairman when it was nationalised, will became non-executive chairman when Mr Hoffman takes up his role in October. Mr Sandler has said “This is a major step forward for Northern Rock.”
Visit www.northernrock.co.uk for more information on the bank and their services.
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