Northern Rock under fire over exec pay rises

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

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.

Further reading:

FSA: Northern Rock ‘solvent’

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