Northern Rock bill for board pay soars

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THE WAGE bill for the executive directors of Northern Rock, the former building society which floated on the Stock Exchange in October, soared by almost 40 per cent last year to more than pounds 1.4m.

Leo Finn, Northern Rock's chief executive, netted pounds 429,000 before company contributions to his pension scheme. This represents an increase of 65 per cent, although Mr Finn shouldered additional responsibilities last year following the sudden death of Christopher Sharp, Northern Rock's managing director. Prior to Mr Sharp's death, Mr Finn was the deputy managing director.

Mr Finn's package comprises a salary of pounds 218,000, bonuses totalling pounds 200,000 and benefits of pounds 11,000. In addition, the company contributed almost pounds 30,000 to his pension last year. In 1996, Mr Finn earned pounds 260,000 while Mr Sharp earned pounds 310,000.

Along with the three other Northern Rock executive directors, Mr Finn benefited from aone-off "conversion bonus". Six senior Northern Rock executives also received a one-off bonus. A Northern Rock spokesperson yesterday declined to say what proportion of Mr Finn's 1997 total bonus was accounted for by the conversion bonus.

The three other executive directors - Bob Bennett, Adam Applegarth and David Baker - received a combined increase of over 100 per cent.

Outlook, page 23

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