RICHARD Pym, the chairman of Bradford and Bingley, is being brought in to head up the “bad bank” division of Northern Rock.
Following the restructuring of the state-owned bank to take effect New Year’s day, Pym will become chairman of Northern Rock (Asset Management), which will hold the bulk of the existing mortgage book.
Current chairman Ron Sandler will become chairman of the new savings and mortgage bank, which will keep the name Northern Rock.
As expected, chief executive Gary Hoffman will continue as chief executive of both organisations to “ensure continuity and orderly separation”, the bank said.
Pym, a former chief executive of Alliance & Leicester and seen as a safe pair of hands in the city, will remain as chairman of B&B.
His dual role will fuel speculation that the asset management division of Northern Rock could be merged with B&B.
Sandler’s salary will drop from £350,000 a year to £250,000 following the split. Pym will receive £250,000 for chairing both companies, of which £187,200 comes from B&B.
Northern Rock said Pym would bring his “expertise and experience from Bradford & Bingley”.