Fury as Northern Rock's 4,000 workers to get £8.8million in bonuses

PasturesNew

Northern Rock employees will pocket a whopping 10 per cent pay bonus this Friday, it has been revealed.

The state-run bank will hand out £8.8million to its 4,000 staff after they met targets on repaying the bank's £26billion Government loan.

They returned a quarter of the money by December 31.

The once-beleaguered bank has now paid back half of it's loan and sights are now set on the new bonus - a further tenper cent - once three-quarters is repaid.

A spokeswoman confirmed that the 10 per cent bonus would be paid to staff who met the criteria.

http://www.dailymail.co.uk/news/article-1125468/Fury-Northern-Rocks-4-000-workers-8-8million-bonuses.html?ITO=1490

ILW

PasturesNew wrote: »

http://www.dailymail.co.uk/news/article-1125468/Fury-Northern-Rocks-4-000-workers-8-8million-bonuses.html?ITO=1490

Is that each?

itsnever2lateisit?

Who is furious? The Daily Mail? They who sell one of their titles to an (ex) KGB chief.

The ordinary Joes at NR have been asked to wind the business up by running down the loan book, and in effect work themselves onto the dole queue. Of course they need an incentive. Jeez the Daily Mail prints a load of hogwash:mad:

Airwolf1

Why can't Northern Rock reduce its SVR for people like me then, rather than splashing the cash around. Pah.

PasturesNew

I was wondering if the bonuses have been gained by the practice of encouraging good payers with good credit to leave/settle the debt ... so it's a false success if that's the case.

Radiantsoul

10% bonuses are pretty common in banking. It might not be appropriate for high level execs who caused the problems, but for typical bank staff on £20k-£30k a year I am not sure it is a problem.

kennyboy66_2

The comments bit is hilarious.

I surprised no one has suggested that employees be forced to work in return for food tokens.

chewmylegoff

i for one don't have a problem with NR's staff being incentivised to ensure that the organisation repays a £26 billion loan to the taxpayer, and being rewarded with pre-agreed bonuses for meeting pre-agreed targets in connection with that.

what a nothing story.

Old_Slaphead

As anybody who's liquidated a debtor book would know, the first 75% is the easy bit - it's the last 25%, most of which is the crud that get's written off, that's the hardest. That's the stuff that gets passed on to the blokes with the proverbial big sticks and they usually get more than a 10% payback.

robin_banks

A bonus is normally payable as a result of performance. As NR have repaid on time half of a £26,000,000,000 loan they appear to be due this payment of £8,800,000 between 4000 staff.

That's an average of £2,200 which is of course subject to Tax & NI so the state recoup a third of this.

Should NR have defaulted what would the financial implications have been?.

It is a bit no news to say the least, still the figures look good on a headline.

All aboard the outrage bus !!.

CLAPTON

Why does anyone get a bonus for just doing their job?