Result : Hoffman waives payments

The Journal in Newcastle is reporting that the outgoing chief executive of Newcastle-based nationalised bank Northern Rock has bowed to pressure by waiving his salary, pension and benefits for the period of his gardening leave.


Robin Ashby commented : "I'm delighted that Mr Hoffman has taken this sensible decision, which shows his sensitivity to public opinion. Although we do not want our bank taken over by an unknown third party, if that happens and Mr Hoffman again becomes involved with the running of Northern Rock we will be able to have greater confidence in him than if he had trousered the cash."

Northern Rock Chief Executive steps down

Northern Rock today confirmed Gary Hoffman has stepped down as chief executive with immediate effect.

In an interview with the Financial Times, Robin Ashby said on behalf of small shareholders : “Bankers are still looking at the banks as cash cows to be milked rather than someone else’s property to be tended. I’m told Ron Sandler has said that the half million pound pay off package is perfectly normal.

“That’s the problem. Bankers just don’t get it. It was perfectly normal for them to get bonuses for doing their job or for running someone else’s company into the ground. It was perfectly normal to treat themselves to all sorts of perks. But it isn’t now. It isn’t acceptable to the large numbers of people about to loose their jobs with only minimal statutory terms.

“It’s said that Mr Hoffman is going to work for someone else who wants to buy Northern Rock and he has to do on this obscenely remunerated ‘gardening leave’ because he has access to priviledged information.  But what is perfectly normal outside the gilded world of bankers is a clause in the contract to stop someone going of to use that information for a year. So why isn’t this applied here?

“Mr Hoffman should be made to work his notice like anybody else.”

Robin Ashby also echoed the opinion poll published in today's Journal newspaper showing that the first choice for 47% of local people is that Northern Rock should become a Building Society again. "This is exactly in line with what many small shareholders have told us. They would like their shares back, or proper compensation, but many would be willing to forego this if the Rock became a building society again."

Only 27% of respondents said that their first choice was to see Northern Rock flogged off privately as a bank.