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Rock bonuses are wrong

Mar 14 2010 by Ian Robson, Sunday Sun

STAFF and management at Northern Rock are to be congratulated on reducing the bank’s debts.

The lads and lasses have done well to cut losses from £1.36bn in 2008 to £257m in 2009.

But a loss is still a loss.

And no way should they walk away with bonus payments. It’s like getting a reward because the disaster is not as bad as it could be.

But they will get payments of £3,000 each.

It seems rearranging the deckchairs on a sinking ship does make sense in the world of banking.

It’s that kind of economic thinking that got us all in this mess in the first place.

At least chief executive Gary Hoffman had the grace to waive his entitlement to a £700,000 bonus.

But he claims it is right for staff to get their reward for rebuilding the troubled bank.

Right? When the bank is still bleeding £257m?

A housewife would never get away with that kind of budgeting and neither should a bank.

If the dosh isn’t there, it isn’t there. Mr Hoffman may have done the decent thing but his troops are happy to pocket their own bonuses.

He should have braved the storm and insisted they follow his lead.

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