Member Article

Northern Rock plc: Directorate Change

NORTHERN Rock yesterday announced that Chief Executive Gary Hoffman has stepped down from his position at the company.

The Company which employs more than two thousand regionally also confirmed that Ron Sandler will take over Mr Hoffmans responsibilities and revert from Non Executive to Executive Chairman with immediate effect.

Ron Sandler, Executive Chairman, said: “The Board recognises the role Gary has played in the rehabilitation of Northern Rock and thanks him for his significant contribution.

“ I will resume my role as Executive Chairman for the foreseeable future and, along with a strong Board and executive management team, provide the continuity of leadership in the bank at this important time. I am looking forward to returning to the role I had in 2008.“

Mr. Hoffman has left to join NBNK Investments plc (“NBNK”) as CEO and will take garden leave from the Company until 30 April 2011 receiving £350,000 in pay in addition to pension contributions by Northern Rock.

NBNK, which was formed by Lord Levene, the chairman of Lloyd’s of London and includes among its board members Sir David Walker aims to create a new UK high-street bank, with a network of 400-600 branches so that it might claim 6% of the market.

The new banking start up has committed not to make a bid for Northern Rock plc for a period of 12 months from 1 November 2010.

Gary Hoffman said: “We have achieved a great deal together at Northern Rock in the last couple of years in the best interests of tax payers. I have enjoyed my time with Northern Rock immensely. However, it is now time for me to take on a new challenge.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .