Northern Rock's former chief executive, Adam Applegarth, will be entitled to receive monthly payments of about £63,330 over the next 12 months as part of a severance package from the mortgage lender, despite the lender being taken into government ownership earlier this year, The Telegraph reports.
Mr Applegarth is expected to receive the controversial payments, which come to a total of £760,000 over the year, despite criticism from shareholders who have seen the value of their holdings in the company virtually wiped out after it was engulfed by the credit crisis last year. The payments are equal to Mr Applegarth's salary last year and can be cut if he takes a new job within the year. The news comes as Northern Rock announced it made a loss of £167.6m in 2007. It has promised to repay its £24bn state loan by 2010. THE US TREASURY secretary, Henry Paulson, will today propose the b...
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