Huge payoff for Rock chief

The former boss of Northern Rock will be entitled to a £760,000 (€954,300) payoff despite the bank being rescued by the Government, it was confirmed today.

The former boss of Northern Rock will be entitled to a £760,000 (€954,300) payoff despite the bank being rescued by the Government, it was confirmed today.

Adam Applegarth, who stepped down as chief executive of the mortgage lender in December, could receive £63,333 (€79,500) a month for up to a year under the severance deal, the nationalised lender’s 2007 annual report said.

The document also revealed that Northern made a loss of £167.6m (€222m) during the year as it tried to fight off nationalisation, compared to a £626.7m (€787m) profit the year before.

Northern Rock, which is now under the chairmanship of City troubleshooter Ron Sandler, also said it pledged to repay £24bn (€30m) in Government loans by the end of 2010.

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