Dearbail Jordan
Win VIP tickets
Northern Rock's chief financial officer, Ann Godbehere, is set to leave the state-owned bank in February after earning nearly £1 million for 12 month's work.
The bank announced today that Ms Godbehere will step down from Northern Rock's board next month, and leave the group in February.
Since joining 11 months ago when the Government nationalised Northern Rock, Ms Godbehere, the former finance director at Swiss Re, has been earning £75,000 a month, and will end her time at the bank with total pay of £900,000.
Ms Godbehere's pay deal, as well as the £3,000 a day negotiated by Ron Sandler, Northern Rock's non-executive chairman, caused outcry last year when details emerged after shareholders lost millions of pounds when the bank collapsed.
The Government nationalised Northern Rock after the mortgage lender was forced to seek around £26 billion in emergency funding from the Bank of England when its main means of raising capital, through the wholesale market, dried up.
The wholesale market is where banks lend money to each other. Since September 2007, the wholesale market has remained frozen because banks, who were scared about rivals' exposure to the sub-prime mortgage market, refused to lend money over fears the sums would not be repaid.
Northern Rock said today it is currency searching for a replacement for Ms Godbehere "but that process has not yet concluded".
Ms Godbehere's departure has emerged just days before former investors in Northern Rock take on the Government at the high court over its decision to nationalise the lender.
SRM Global and RAB Capital, which between them owned more than 20 per cent of Northern Rock, will challenge the Government on the terms that were used to compensate shareholders when it was nationalised.
Win a luxury weekend to Newcastle and its neighbour Gateshead, find out more here
Risk, resilience and embracing new technology
Industry sectors news at a glance. Interactive heatmap, video and podcast
Discover the power of collective thinking. Submit a solution and be in with a chance to win a Media Hub Home Entertainment System
The inside track on current trends in the charity, not for profit and social enterprise sectors
Everything the Business Traveller needs to know to make a better trip
Make the most of the summer and enter our fabulous photographic competition, you could win a £5000 holiday
Corsica is an island of beauty and contrast, an ideal holiday destination
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
The clever way to lease a new car is with Car leasing made simple™
2009
per month on 36-month
Personal Contract Hire (PCH)
2008
42850
Car Insurance
£23,093 - £56,211
The Office for National Statistics
Newport, South Wales
£60,000
The Environment Agency
Bristol
Up to £90K
Boots
Midlands
OTE £85k
Credit Protection Association
Nationwide Opportunities
Completely London
Luxury Condo's in Manhattan with NYC views
The best new homes in Wimbledon?
Nationwide
Fabulous Cruise And Cruise & Stay Offers Including Virgin Atlantic Flights Prices Start From Only £699pp!
Last Minute Cruise And Cruise & Stay Offers. Med From £499pp, Caribbean From £699pp!
5 star quality at a 3 star price.
8 fabulous Canadian cities ...you won’t find cheaper
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Property Finder | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
Give any group of humans too much power, be they goverment or bankers, and this is the kind of world you create, where greed and excess is encouraged and rewarded.
Yes it is time for a change, and we all, collectively have the power to change it for something better.
Gary ash, Bristol, Uk
She should have been a Premiership footballer. £75K a month? she'd have earned that in a week.
Neil, Essex,
Whilst she is walking away from Northern Rock with a shed load of money [ £900000} I am losing 40% of my State Pension because I live in germany,and the Government has let the value of the £ against hte Euro go down the tubes.Today
the £ is worth only 98cents . Thank you mr Brown
Jim Jenkins, Salzhemmendorf, Germany
As Bob said ' there's no success like failure'..........
Terry Garratt, Dudley, UK
This simply will not do.
Grant Wood, Torquay, UK
Don't worry folks, in 2 years time £900k will only be worth £90k in today money.....
jon, Rotherham,
This was clearly going to be a short term contract, why on earth was someone not employed as a consultant at a fixed price per day, so that the contract could be ended easily by either side.
The incompetence on awarding these contracts is amazing.
K Wells, Bognor, Sussex, England
Love the jealous comments so far. This woman didn't create the mess, she arrived to help clean it up. Oooops?? Perhaps the Government could have hired someone for 250K/yr who could have lost a further billion or two. You pay for quality. If she's good they got a great deal; if not . . . .
Rod, NYC, US (orig UK)
Good story Derv - absolutely unbelievable salaries cause me to fume. GRRRRRRRRRRRR!
Cormac, Bristol, uk
This is obscene!
John Lancaster, Sheffield,
She hasn't earned it, she's been paid it. Big Difference.
Polly Parish, tenby, wales
Is this really true.
Words FXXXXXXXXXwell fail me
Michael Palmer, Woodbridge, UK
It will take me about 60 years to earn that much..... Good work if you can get it
Fred , Worcester, England
Just another example of the corruption which surrounds this government. Jobs for mates earning ridiculously obscene salaries for doing nothing.
I'm sure she'd be proud to know that her salary could pay my Nothern Rock mortgage back 9 times over!
James B, Kent,
For what is she being paid? What has she contributed? Typical of the current regime in which obsene amounts are paid for nothing. The more grotesquely incompetent you are, the more you get, and the bigger the payout - too often followed by appearance in the honours list and a quango appointment.
Frank, CHESTER,
Glad the taxes i have worked hard to pay went to a worthy cause after all - Many thanks Mr Brown
Peter, Aldershot, UK
I'm so pleased about this. I was really worried that her evident ineptitude and short-sighted greed might lead to her being slung out on her ear with nothing.
Mikey, Bromley, Kent
I understand she is also a non-dom (as is Sandler).
John Norfolk, Norwich, UK