Northern Rock has confirmed the constitution of two new boards that will take effect on 1 January 2010, subject to FSA approval, following completion of its legal and capital restructuring process.
The restructuring will result in two separate companies, Northern Rock plc, a new savings and mortgage bank that will hold and service all customer savings accounts and some existing mortgage accounts and Northern Rock (Asset Management) plc, the existing company renamed, which will hold and service the balance of the existing residential mortgage book.
Northern Rock said that the following appointments are designed to harness retail banking, financial and operational experience to ensure each company can meet its objectives and, in turn, deliver value for taxpayers.
Ron Sandler, currently non-executive chairman of the existing company, will become chairman of the newly created Northern Rock plc.
Richard Pym will be appointed as non-executive chairman of Northern Rock (Asset Management) plc. He will bring expertise and experience from Bradford and Bingley, a similar mortgage company, where he will continue in his role as chairman.
Gary Hoffman, currently CEO of the existing company, will take on the position of co-CEO of both the newly created Northern Rock plc and Northern Rock (Asset Management) plc following the restructure.
Mr Sandler said: “I am delighted that we have been able to assemble boards of such experience and quality to oversee the development of both companies in the coming years. I welcome the new board members of both companies and also extend my thanks for their contribution to John Devaney and Tom Scholar, who retire from the board on 1 January.”
