British bank Northern Rock had been taken under state control after a funding crisis, and Gary Hoffman, an executive from the lender Barclays, would take over as chief executive in October.
Ron Sandler, who was appointed executive chairman when the government took control of Northern Rock in February, will instead become non-executive chairman when Hoffman starts on Oct. 1 .
Meanwhile,the current chief executive Andy Kuipers, will leave at the end of August.
Hoffman, 47, is vice chairman of Barclays and has been with the bank since 1982. He was previously head of the Barclaycard credit card business and chairman of its British banking. According to release, he will be paid salary of £700,000, or $1.4 million, plus a further £1.2 million in compensation for the loss of participation in pay plans at Barclays, Northern Rock said. Sandler’s £90,000- a-month salary will be reviewed when he changes position.
