Northern Rock head is making a small fortune

THE head of nationalised bank Northern Rock was paid an astounding £1.3m in 2009, despite the group recording a loss of £257m last year.

Gary Hoffman’s basic £700,000 salary was boosted by pension payments and the second tranche of a 1.2m compensation package for incentives lost when he left Barclays in 2008, according to the bank’s annual report.

Despite waiving his bonus amid public outrage over banker pay, Hoffman’s pay package makes him one of Britain’s best paid civil servants.

He will receive his last £400,000 Barclays-related compensation instalment in October 2010. Overall, the group paid its directors £2.4m.