Northern Rock chief executive took home £1.3 million last year
Gary Hoffman, the chief executive of Northern, took home £1.3 million last year placing him amongst the highest-paid civil servants in the UK. Details of his remuneration package were revealed in the report and accounts for the Northern Rock "bad bank" operation which was separated from the more profitable operations of the original Northern Rock.
Even though the report and accounts also show that he rejected a proposed bonus payment put forward by the remuneration committee, the £1.3 million package for last year will yet again fuel the fire of taxpayers concerns about remuneration in the banking sector. While the company made a loss of £383 million last year this was well down on the £1.3 billion figure in 2008 and it is the fact that these figures were much better than expected which may well have supported the £1.3 million remuneration package.
One of the major issues with the "bad bank" operation of Northern Rock is the very fact the UK authorities are likely to retain this operation indefinitely and effectively look to wind down what is a mishmash of bad loans and bad business. It is also worth remembering that Northern Rock still owes UK taxpayers billions upon billions of pounds from earlier bailout loans, with some suggestions that these will never be repaid in full.
Share this..
Related stories
Capital gains tax changes to go ahead
The Chancellor of the exchequer has confirmed the previously proposed changes to the capital gains tax (CGT) system will go ahead.Alistair Darling said that the top CGT rate of 40 per cent and taper relief will be replaced with an 18 per cent flat rate.Around 80,000 people will be eligible to benefit under the new rules, at a cost of £200m annually, Mr Darling claimed.A new "entrepreneur's relief...
Read MoreDid You Meet The Tax Credit Deadline?
While the deadline for renewing tax credits was the 31st July it seems that literally hundreds of thousands of people were unable to get through on the helpline and may see their income slashed for the next 12 months. Failure to renew a tax claim prior to the 31st July will see all over payments reclaimed automatically and any previous arrangements cancelled.
Since being introduced...
Deutsche bank issues response to UK bank bonus tax
Deutsche bank, the massive German financial company, has issued a veiled response to the UK government is banking bonus tax which will see a 50% levy on bonuses above £25,000 year. The company has over 80,000 employees around the world of which 8000 are based within the UK. However, the company's answer to the UK bonus tax may well surprise many! It is believed that Deutsche bank is looking to...
Read MoreIs JP Morgan the first casualty of the banking bonus tax?
The UK government is today reeling from news that JP Morgan, the US financial giant, is reconsidering a £1.5 billion London head office in light of the government's banking bonus tax. While the company has remained silent in public, it is believed that Jamie Dimon, chief executive of JP Morgan, called the chancellor Alistair Darling and threatened to scrap the introduction of the company's new Eu...
Read MoreAre you making best use of tax efficient investment vehicles?
In everyday life the government seem intent on taking as much tax as possible with many taxpayers questioning what they actually receive in return. However, there are a number of long-term tax efficient savings vehicles which many people seem to ignore at their peril and their long-term cost. But why would a government incentivise the UK public to save for their future?
In simple te...