Rock's chief Hoffman given £1.4m despite loss of £383m

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Gary Hoffman, the chief executive of the nationalised bank Northern Rock, was paid nearly £1.4m last year – more than he was previously receiving at Barclays Bank, it emerged yesterday.

The figure, revealed in the Rock's annual report and accounts, excludes a bonus payment because Mr Hoffman waived his right to receive an award despite hitting performance targets.

Nevertheless, the size of the package awarded to Mr Hoffman, which made him one of the country's most highly paid public servants, is likely to prompt some anger, because Rock lost more than £380m last year.

The bank has subsequently been split into "good" and "bad" banks, both run by Mr Hoffman, with the former now slated for privatisation.

Mr Hoffman's rewards last year included a basic salary of £700,000 and pension payments worth £280,000. In addition, he received £400,000, the second of three payments that Rock agreed to award him when he joined the bank in 2008 in compensation for long-term performance awards he gave up on quitting Barclays. The third payment is due in October.

Mr Hoffman earned £1.1m at his former employer in 2007, his final full year at Barclays.

Yesterday, Northern Rock said it was in the process of designing a new long-term rewards scheme for its chief executive, which would not pay out until the bank began turning a profit.

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