Substantial pay rises to executive directors at beleaguered mortgage lender Northern Rock just days after the FSA warned of the threat it faced due to the growing US sub-prime lending crisis has angered corporate governance body, Pensions and Investment Research Consultants (PIRC).
Andy Kuipers and Keith Currie, the lender's commercial and treasury directors, got 14% cent increases, taking their pay to £415,000, along with deputy chief executive David Baker who saw his pay climb 16% to £530,000, and CEO Adam Applegarth, who received a 10% rise to £760,000.
Furthermore, the pay increases came just three months before the mortgage lender issued a profits warning, citing the sub-prime crisis.
'The impact [of the sub-prime crisis] on their business must surely have been known when the remuneration consultants proposed such a weak earnings measure,' PIRC spokesman Tom Powdrill said.
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