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Banking: Northern Rock

Volume 709: debated on Monday 16 March 2009


Asked by

To ask Her Majesty's Government what directions they gave to the management of Northern Rock concerning the payment of staff bonuses. [HL1105]

The Treasury and UKFI have been liaising with the board of the banks of which they are major shareholders on remuneration policy. This includes work to ensure that remuneration policies are in line with the Government's principles on pay, including no rewards for failure.

Under the Northern Rock shareholder relationship framework document the Government require that executive incentivisation be linked to delivery of the objectives set out in the business plan. Government approval is required for remuneration packages and incentivisation arrangements for directors of Northern Rock. Junior staff pay and incentive arrangements are a matter for the company.