Hester To Step Down At Northern Rock

by Robin Pilgrim, LawAndTax-News.com, London

29 August 2008

Northern Rock announced on Wednesday that Stephen Hester, currently the company's non-executive Deputy Chairman, will step down from the Board on October 1, 2008.

As previously announced, Gary Hoffman will join the Company as Chief Executive (also on October 1) and Ron Sandler will relinquish his full time executive role to become non-executive Chairman at the same time.

A consequence of this transition is to change the nature of the Deputy Chairman’s role, which was created in February 2008 in response to the unitary Executive Chairman position adopted on transfer of ownership of the Company to HM Treasury.

The Company also strengthened the Board in July 2008 with the appointments of Kent Atkinson (formerly Finance Director of Lloyds TSB) and Richard Coates (formerly KPMG lead partner for the HBOS audit) as non-executive Directors.

Ron Sandler, Executive Chairman of Northern Rock commented that:

“We are grateful to Stephen for his substantial contribution to the Board in the vital initial phase of public ownership. We have accomplished the key stages of adopting a restructuring plan, advancing its implementation, recruiting new management and Board members and ensuring that the Company’s capitalisation is put on a firm footing."

"Most importantly, repayment of Government debt is progressing ahead of schedule. Gary Hoffman’s arrival as CEO will allow me to revert to a more conventional, non-executive Chairman role and thereby gives Stephen the opportunity to step down from the Board and focus on other business interests.”

Recommended