Monday, March 31, 2008

Rock should be re- branded as “Northern Robbery”

Northern Rock to pay staff bonuses despite huge losses

Northern Rock plans to introduce an all company bonus incentive scheme in the coming weeks, despite the fact the lender made a £167m loss last year. In a conference call to journalists today, executive chairman Ron Sandler said that he was finalising an incentive scheme which he intended all staff to participate in. The scheme would reward management and other staff if company targets are met.

Posted by jack c @ 02:18 PM (290 views)
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5 thoughts on “Rock should be re- branded as “Northern Robbery”

  • housing carbuncle says:

    Rewrite

    “Taxpayer to pay staff bonuses despite huge losses”

    Can this immoral banana republic fiasco get any worse ? Yes probably.

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  • I’m gobsmacked. Since when has it been okay to reward failure with this type of largesse?

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  • But he’s being rewarded for robbing from the poor to give to the rich.

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  • I can’t see the problem here. Most, if not all banks have target driven bonus incentives for staff. These range from an extra cash payment in the pay packet to share options, ‘sharesave’, or even a holiday. The downside is that if targets are not met then you may be penalised which in the more serious cases means you lose your job. NR is just introducing a revised bonus scheme as they move forward.

    What I would say however is that the company incentive scheme generally can encourage naughty behaviour as staff worry about achieving targets which, in some cases are unrealistic (and I’ve seen some bank staff in tears over this). They will do anything they can get away with to reach those targets, even if it means bending the rules.

    Just as an aside, I once had a holiday job sandblasting the paint off ship’s array aerials. There was a bonus incentive scheme where you got paid more if you blasted more units, which was logical. Trouble is, the union had also negotiated a ‘difficulty bonus’ as the permanent workers claimed some of the aerials took longer to sandblast due to weathering or harder paint. It took me a while to figure out why the other workers always seemed to get the ‘difficult’ aerials. Doh!

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  • Northern Rock operated what the Treasury Select Commitee described as “a wreckless business model” – ultimately the Government (Tax payer) was forced to take NR into public ownership at the Tax payers expense.

    I cant quite see Honda in Swindon (purely as an example) if they operated “a wreckless business model” (a) being bailed out (b) the workers given a bonus or incentive scheme as the company was “run down” (c) the CEO getting a golden goodye of £750K

    I have no problem with Ltsb (again purely as an example) operating a bonus scheme as they are not in public ownership and are profitable and solvent.

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