Chief paid for not working.THE former boss of Northern Rock has pocketed more than pounds 800,000 from the bank after failing to find a new job. Mr Applegarth, who was the chief executive of the Newcastle-based bank when it plunged into the crisis that many financial experts pinpoint as the start of the credit crunch Credit Crunch An economic condition whereby investment capital is difficult to obtain. Banks and investors become weary of lending funds to corporations thereby driving up the price of debt products for borrowers. , signed a deal that meant the bank continued to pay him for 12 months as long as he didn't find further employment after he left in December last year. It paid the ex-boss pounds 731,629 in monthly installments over 2008 and put pounds 108,675 into his pension pot. Under the termination agreement, the monthly payments would be reduced if he found a new job with a salary of at least pounds 20,000 before November 16 last year. But he did not find alternative employment and the bank was forced to continue paying him. The Rock made a pounds 1.36bn loss last year and repossessed 3,620 homes, up 63% on the year before, although it has scaled back the number since the peak month for repossessions in September. More than 17,000 of its mortgage customers were at least three months in arrears Adv. 1. in arrears - in debt; "he fell behind with his mortgage payments"; "a month behind in the rent"; "a company that has been run behindhand for years"; "in arrears with their utility bills" behindhand, behind . The bank, which had stepped back from offering mortgages, now has up to pounds 14bn to lend home buyers in the next two years as the Government tries to get the housing market moving a gain. CAPTION(S): FORMER BOSS: Adam Applegarth Adam J. Applegarth (born August 1962 in Sunderland, England)[1] is the Chief Executive Officer of the Gosforth, Newcastle upon Tyne based Northern Rock bank.[2] |
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