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Northern Rock troubleshooter billed taxpayer for £173,000 expenses
Hugo Duncan03.03.09
THE troubleshooter brought in by the Government to run Northern Rock cost the taxpayer £173,000 in expenses last year as she travelled between her home in Switzerland and the UK.
Zurich-based Ann Godbehere, 53, became chief financial officer of the failed Newcastle bank on a £900,000-a-year salary but decided to commute between home and work every week.
Northern Rock accounts published today show she earned £786,000 last year having joined the lender in February after it was nationalised. After expenses the total bill to the taxpayer was £959,000 for little more than 10 months' work.
Critics called the payouts "silly money" and accused the Government of wasting taxpayers' cash.
It came as the wreckless lending habits of the bank before its collapse were laid bare.
More than 8,000 of the 177,000 borrowers from Northern Rock's high-risk Together business -which offered 125 per cent mortgages - were in arrears at the end of last year. That was 4.53 per cent, up from 0.95 per cent at the end of 2007.
Northern Rock also confirmed it made losses of £1.4 billion last year.
Matthew Elliott, chief executive of the TaxPayers' Alliance, said: "Northern Rock's catastrophic problems have already cost taxpayers a fortune without the new management trying to fill their boots as well. This is silly money. To have any hope of getting taxpayers' money back from Northern Rock it must be run as a tight ship, but there are worrying signs that the gravy train is still rolling along."
Northern Rock said that once tax and national insurance payments were taken into account, Ms Godbehere's travel bill was £95,000 for 10 months or just over £2,000 a week. This covered regular business-class travel between her family in Zurich and work in London and Newcastle.
A spokesman said: "Ann Godbehere is a highly experienced and respected finance director appointed by the Government who met the requirements of Northern Rock during the intense period of activity following nationalisation. The fact that she was based in Zurich necessitated a large amount of travel between Switzerland and the UK."
Ms Godbehere, a former financial chief of insurance giant Swiss Re, left Northern Rock at the end of January.
Other government appointees at Northern Rock also earned a fortune last year.
Chairman Ron Sandler was paid £760,000 while new chief executive Gary Hoffman earned £645,000 for just three months' work.
Mr Hoffman, a former Barclays banker, was given a golden hello of £400,000 when he joined in October - to be repeated in October this year and again in October next year - on top of his £700,000 annual salary.
Northern Rock also awarded payoffs worth more than £1.25 million to departing directors Bryan Sanderson and Andy Kuipers.
Reader views (16)
This government goes from worse to ridiculous. It is just with utter disbelief that I read this.
It is now very apparent that this Labour government are running around in circles like headless chickens.
- Frank, Home Counties, England.
..If there is a Bank / Building Society left in the UK with any morals, any financial integrity and trustworthiness, would they please make themselves known..
- Joannie, London, England
The sums of money mentioned in this article show that Labour has promoted the breakdown of society in the Uk.The forecasts of violence as citizens express their rage have already been made and I can foresee violence being visited on the politicians and these rats in the financial world.Compare the sums with the salary of a nurse teacher policeman doctor and one's stomach turns with the evident injustice of our system.
- Doff, filey yorks
As a recently retired chartered accountant with a modicum of common sense, I would like to know how to get myself on to the government's list of chief executives in waiting. I will take on any honest role for no more than £5,000 per month.
- Colin Macpherson, Gramat France
Public governance coming from Nu Labor has been awful. Crash Gordon should not try to shift the blame for this he was responsible for letting banks out of control!
- Steveo, London, NW1
I think that one good thing to come out of this Credit Crunch crisis is the clear evidence of human greed. Everywhere you look there's people with their noses in the trough of greed. The culture that exists in business has to change. Society should not tolerate or accept this behaviour from companies and the managers that run them.
- David, London
all bank executives and others who've benefited in th elast year should be forced by law to return it to the people they've ripped off.
- Beljamine, uk
Disgusting...
- Teddy, Islington, London
Totally outrageous. Nobody can criticise the level of salary that she has negotiated for herself-that is presumably the going rate. But the expenses are a totally different matter. If you work for Northern Rock in Newcastle or wherever, then that is where you are based, not your home address. The cost of travel from your home to your place of work should come from your disposable income i.e. after tax.
- Mikey, Tring UK
Hold on now, expenses are for business related activities, travelling to and from work is not one of those, or can I start claiming tax back from the Inland Revenue for my travel to and from work?
- Bob, Cheam
Surely she should be paying for any travelling expenses from her salary, why expense it. Yet this Government would have us believe that its the bankers that have brought down the Country or the USA. It seems that they have brought us down with all their free loading expenses, curtesy of the tax payer.
- Jk, London
This sad "government"" cannot be trusted to be frugal or good at economics. Crash Cordon has gamled this country away - his bets went sour. Very sour and all he has touched has gone spectacularly wrong!
- Georgie, Islington, London
has she not heard of Video Conferencing then? I would suggest that she is made aware of it immediately to avoid any further unnecessary expense. typical - spending other peoples money is so easy.
- Gary, amersham
You could have surely found someone who lived a bit nearer,it must be nearly time for me to be in charge.
- David., Chertsey.UK.
Mr Hoffman, a former Barclays banker, was given a golden hello of £400,000 when he joined in October - to be repeated in October this year and again in October next year - on top of his £700,000 annual salry - HOW MANY TIMES do we the taxpayer have to say "Hello" to this greedy "former Barclays banker"???
- Malcolm, London
Our leaders and their City pals really don't get it, do they?
- John Problem, Hackney Wick, London, UK
