Northern Rock has named Barclays vice chairman Gary Hoffman as its new chief executive. He will replace Andy Kuipers from the start of October.
Kuipers will leave the nationalised mortgage lender at the end of August. The appointment will also lead to Ron Sandler, the executive chairman the Treasury drafted in to take charge in February, becoming non-executive chairman when Hoffman takes up his post.
Hoffman has been with Barclays since 1982 and prior to his current role of vice chairman he was head of the Barclaycard credit business and chairman of UK banking.
Hoffman will be in charge of repaying the £25bn Bank of England loan by 2010 and releasing the Government from the £75bn of guarantees it made to Northern Rock when the credit crisis hit the lender.
Northern Rock says Hoffman’s basic annual salary will be £700,000 per annum, plus any entitlements from a new incentive scheme due to start later this year.