Northern Rock Bonus payout - not the ususal rants please

[sleep envy]

the currant bun said:

NORTHERN Rock is to pay its staff millions in bonuses — after being bailed out with £3billion of taxpayers’ cash.
Its 4,000 workers will get lump sums totalling an estimated £50million. Chief exec Gary Hoffman, 48, who only started this month, is set for £420,000 on top of his £700,000 salary.


He has already had £1.2million for giving up long-term bonuses in his last job at Barclays.

http://www.thesun.co.uk/sol/homepage/news/money/article1840339.ece

excuse the link to the gutters but couldn't be arsed to trawl the press sites

bit premature?

Edited by sleep envy on Wednesday 22 October 14:23

[David87M3]

sleep envy said:

the currant bun said:

NORTHERN Rock is to pay its staff millions in bonuses — after being bailed out with £3billion of taxpayers’ cash.
Its 4,000 workers will get lump sums totalling an estimated £50million. Chief exec Gary Hoffman, 48, who only started this month, is set for £420,000 on top of his £700,000 salary.


He has already had £1.2million for giving up long-term bonuses in his last job at Barclays.

http://www.thesun.co.uk/sol/homepage/news/money/article1840339.ece

excuse the link to the gutters but couldn't be arsed to trawl the press sites

bit premature?

Edited by sleep envy on Wednesday 22 October 14:23

I know the rock are doing well paying back the money loaned to them (hence possible reason for bonus), BUT I thought silly bonuses were being banned in the banking sector? especially those banks bailed out?

[maix27]

David87M3 said:

sleep envy said:

the currant bun said:

NORTHERN Rock is to pay its staff millions in bonuses — after being bailed out with £3billion of taxpayers’ cash.
Its 4,000 workers will get lump sums totalling an estimated £50million. Chief exec Gary Hoffman, 48, who only started this month, is set for £420,000 on top of his £700,000 salary.


He has already had £1.2million for giving up long-term bonuses in his last job at Barclays.

http://www.thesun.co.uk/sol/homepage/news/money/article1840339.ece

excuse the link to the gutters but couldn't be arsed to trawl the press sites

bit premature?

Edited by sleep envy on Wednesday 22 October 14:23

I know the rock are doing well paying back the money loaned to them (hence possible reason for bonus), BUT I thought silly bonuses were being banned in the banking sector? especially those banks bailed out?

Surely as tax payers are esentially stakeholders shouldn't we be getting dividends?

It is just take, take, take with bankers.

I think the money could be better used backing up small businesses etc...

[esselte]

It's as ridiculous as the EU gravy train isn't it... If the company had been making lots of profit then fair do's but as it is it's a bit of a piss take... all my opinion obviously...

[johnfm]

David87M3 said:

sleep envy said:

the currant bun said:

NORTHERN Rock is to pay its staff millions in bonuses — after being bailed out with £3billion of taxpayers’ cash.
Its 4,000 workers will get lump sums totalling an estimated £50million. Chief exec Gary Hoffman, 48, who only started this month, is set for £420,000 on top of his £700,000 salary.


He has already had £1.2million for giving up long-term bonuses in his last job at Barclays.

http://www.thesun.co.uk/sol/homepage/news/money/article1840339.ece

excuse the link to the gutters but couldn't be arsed to trawl the press sites

bit premature?

Edited by sleep envy on Wednesday 22 October 14:23

I know the rock are doing well paying back the money loaned to them (hence possible reason for bonus), BUT I thought silly bonuses were being banned in the banking sector? especially those banks bailed out?

£50million for 4000 workers is an average of £12,500. haardly 'silly bonuses' are they?

[esselte]

johnfm said:

David87M3 said:

sleep envy said:

the currant bun said:

NORTHERN Rock is to pay its staff millions in bonuses — after being bailed out with £3billion of taxpayers’ cash.
Its 4,000 workers will get lump sums totalling an estimated £50million. Chief exec Gary Hoffman, 48, who only started this month, is set for £420,000 on top of his £700,000 salary.


He has already had £1.2million for giving up long-term bonuses in his last job at Barclays.

http://www.thesun.co.uk/sol/homepage/news/money/article1840339.ece

excuse the link to the gutters but couldn't be arsed to trawl the press sites

bit premature?

Edited by sleep envy on Wednesday 22 October 14:23

I know the rock are doing well paying back the money loaned to them (hence possible reason for bonus), BUT I thought silly bonuses were being banned in the banking sector? especially those banks bailed out?

£50million for 4000 workers is an average of £12,500. haardly 'silly bonuses' are they?

Depends which planet you live on I suppose....

[GreatGranny]

esselte said:

johnfm said:

David87M3 said:

sleep envy said:

the currant bun said:

NORTHERN Rock is to pay its staff millions in bonuses — after being bailed out with £3billion of taxpayers’ cash.
Its 4,000 workers will get lump sums totalling an estimated £50million. Chief exec Gary Hoffman, 48, who only started this month, is set for £420,000 on top of his £700,000 salary.


He has already had £1.2million for giving up long-term bonuses in his last job at Barclays.

http://www.thesun.co.uk/sol/homepage/news/money/article1840339.ece

excuse the link to the gutters but couldn't be arsed to trawl the press sites

bit premature?

Edited by sleep envy on Wednesday 22 October 14:23

I know the rock are doing well paying back the money loaned to them (hence possible reason for bonus), BUT I thought silly bonuses were being banned in the banking sector? especially those banks bailed out?

£50million for 4000 workers is an average of £12,500. haardly 'silly bonuses' are they?

Depends which planet you live on I suppose....

Considering the average salary in the UK is only about double! Quite generous I think.

Also the Goverment effectively own it so why can't they jusy say no to bonuses until the money is paid back and its in the black.

[rhinochopig]

johnfm said:

David87M3 said:

sleep envy said:

the currant bun said:

NORTHERN Rock is to pay its staff millions in bonuses — after being bailed out with £3billion of taxpayers’ cash.
Its 4,000 workers will get lump sums totalling an estimated £50million. Chief exec Gary Hoffman, 48, who only started this month, is set for £420,000 on top of his £700,000 salary.


He has already had £1.2million for giving up long-term bonuses in his last job at Barclays.

http://www.thesun.co.uk/sol/homepage/news/money/article1840339.ece

excuse the link to the gutters but couldn't be arsed to trawl the press sites

bit premature?

Edited by sleep envy on Wednesday 22 October 14:23

I know the rock are doing well paying back the money loaned to them (hence possible reason for bonus), BUT I thought silly bonuses were being banned in the banking sector? especially those banks bailed out?

£50million for 4000 workers is an average of £12,500. haardly 'silly bonuses' are they?

Except it won't be split equally will it.

Regardless of the rights/wrongs of doing this, it's complete PR stupidity as the public will call for heads to roll, and then the government, seeking votes, will no doubt get involved. Someone in NR wants there arse kicking IMO. Given the banking industry really doesn't want hugely increased regulation, it really isn't doing anything to help those arguing against it.

[Ian V]

johnfm said:

£50million for 4000 workers is an average of £12,500. haardly 'silly bonuses' are they?

I wish someone would give me a 'reasonable' bonus of £12.500 !

Being self employed though that is never going to happen. All seems a bit rich though when we are all suppose to be tighening our belts.

[Swilly]

My issue is not with the principle of paying bonuses after the bank in question has recieved tax-payers money to bail it out....

My issue is one of capitalism and market forces..... Why are bonuses paid !? To incentivise and to attract the best people i assume.

But surely this only applies in a market where the supply of bankers falls short of the demand !!

In this market, where there are thousands of bankers of various sorts, out of work, surely the need to pay bonuses is no longer needed.

Surely, having a job at all in this market is the incentive to work hard and do the business !!

Bonuses make sense when the market forces dictates.... supply and demand !!

[johnfm]

rhinochopig said:

johnfm said:

David87M3 said:

sleep envy said:

the currant bun said:

NORTHERN Rock is to pay its staff millions in bonuses — after being bailed out with £3billion of taxpayers’ cash.
Its 4,000 workers will get lump sums totalling an estimated £50million. Chief exec Gary Hoffman, 48, who only started this month, is set for £420,000 on top of his £700,000 salary.


He has already had £1.2million for giving up long-term bonuses in his last job at Barclays.

http://www.thesun.co.uk/sol/homepage/news/money/article1840339.ece

excuse the link to the gutters but couldn't be arsed to trawl the press sites

bit premature?

Edited by sleep envy on Wednesday 22 October 14:23

I know the rock are doing well paying back the money loaned to them (hence possible reason for bonus), BUT I thought silly bonuses were being banned in the banking sector? especially those banks bailed out?

£50million for 4000 workers is an average of £12,500. haardly 'silly bonuses' are they?

Except it won't be split equally will it.

Regardless of the rights/wrongs of doing this, it's complete PR stupidity as the public will call for heads to roll, and then the government, seeking votes, will no doubt get involved. Someone in NR wants there arse kicking IMO. Given the banking industry really doesn't want hugely increased regulation, it really isn't doing anything to help those arguing against it.

I neither work in banking, nor receive a bonus. However, if at the start of a difficult trading period you incentivise the staff to perform to a certain benchmark, and they achieve it I'm not sure what the problem is. I expect most of the salaries are average and there is a skew to the bonuses for the managers etc. Again, it is jsut an employment contract which I expect the govt. advisors would have been aware of day 1.

[minimax]

johnfm said:

David87M3 said:

sleep envy said:

the currant bun said:

NORTHERN Rock is to pay its staff millions in bonuses — after being bailed out with £3billion of taxpayers’ cash.
Its 4,000 workers will get lump sums totalling an estimated £50million. Chief exec Gary Hoffman, 48, who only started this month, is set for £420,000 on top of his £700,000 salary.


He has already had £1.2million for giving up long-term bonuses in his last job at Barclays.

http://www.thesun.co.uk/sol/homepage/news/money/article1840339.ece

excuse the link to the gutters but couldn't be arsed to trawl the press sites

bit premature?

Edited by sleep envy on Wednesday 22 October 14:23

I know the rock are doing well paying back the money loaned to them (hence possible reason for bonus), BUT I thought silly bonuses were being banned in the banking sector? especially those banks bailed out?

£50million for 4000 workers is an average of £12,500. haardly 'silly bonuses' are they?

when I was at NR the average wage was £12,500, including the bosses. admittedly I left in May 2004 but I don't think it'll have gone up too far from that, especially as I know that there was no incremental rise this last year

an average bonus at that time was £250 although in sales your commission could just about get you over 25k in total wages, if you were in the top 5 or so..

[sleep envy]

Swilly said:

My issue is not with the principle of paying bonuses after the bank in question has recieved tax-payers money to bail it out....

My issue is one of capitalism and market forces..... Why are bonuses paid !? To incentivise and to attract the best people i assume.

But surely this only applies in a market where the supply of bankers falls short of the demand !!

In this market, where there are thousands of bankers of various sorts, out of work, surely the need to pay bonuses is no longer needed.

Surely, having a job at all in this market is the incentive to work hard and do the business !!

Bonuses make sense when the market forces dictates.... supply and demand !!

good point, am surprised that the board feel they can disregard the lessons of last few months and not make sensible decisions

maybe they should have let the bank go to the wall

[was8v]

GreatGranny said:

Also the Goverment effectively own it so why can't they jusy say no to bonuses until the money is paid back and its in the black.

Because then all the good people that work there will get jobs in other banks where they will get better rewarded.

Why would anyone stay at Northern Rock earning £x when they could be earning £x + £bonus at another bank for the same job?

If they (we?) stop paying the going rate for people then they won't be able to attract / keep the best people for the job.

[esselte]

was8v said:

Because then all the good people that work there will get jobs in other banks where they will get better rewarded.

Is that all the banks that are letting people go......?

[sleep envy]

was8v said:

Why would anyone stay at Northern Rock earning £x when they could be earning £x + £bonus at another bank for the same job?

If they (we?) stop paying the going rate for people then they won't be able to attract / keep the best people for the job.

you think there's a big demand for bankers at the moment?

[CooperS]

Lloyds are doing the same the CEO spoke out saying now he has got the cash injected into the business it is up to him how he spends it.... wonder if i can get my 6 grand back if its lining the pockets of already very wealth people?

[league67]

was8v said:

GreatGranny said:

Also the Goverment effectively own it so why can't they jusy say no to bonuses until the money is paid back and its in the black.

Because then all the good people that work there will get jobs in other banks where they will get better rewarded.

Why would anyone stay at Northern Rock earning £x when they could be earning £x + £bonus at another bank for the same job?

If they (we?) stop paying the going rate for people then they won't be able to attract / keep the best people for the job.

It appears that you've used both brain cells to come up with that. Now be a good boy and hit the bricks.

[JagLover]

Another way of looking at things is that since the taxpayer owns Northern rock we want the best return on our investment and if that means paying bonuses to incentivise and retain the best people so be it.

[David87M3]

CooperS said:

Lloyds are doing the same the CEO spoke out saying now he has got the cash injected into the business it is up to him how he spends it.... wonder if i can get my 6 grand back if its lining the pockets of already very wealth people?

I thought getting the cash injection had certain limits to its used and bonuses was NOT one of them. this boils my piss