Northern Rock Splash The Cash
It was reported today in The Mail that Northern Rock, the Newcastle based bank has announced a bonus scheme for it’s workers, as a way of rewarding them for the hard work they have done in helping the bank achieve it’s target of repaying part of its bail out loan from the government.
The amount of money being paid out in bonuses is said to be around £9million pounds, or roughly equivalent to just over £2,000 to each of it’s 4,400 workers. This figure is going to be slighlty out because there is also a larger seven figure bonus pool that will be used to reward the senior executives of the company with much larger bonuses than the non-senior execs and ordinary workers of the bank.
It is reported that the bank will pay out a total of £50million over the next three years in proposed bonuses for its workers. I have no objection to this as long as the money is paid out of profits the bank has made on it’s ordinary trading activities, such as mortgages and loans, however if this money is paid for out of government (taxpayers) money lent to the bank to help it out then I do have a problem.
I still find it a bit difficult to take that a public company is being so profligate with it’s money whilst the rest of the country is going through a very tough economic period, with so many already having been made redundant and the risk of more to come in the coming months.
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