Letter from the Chairman of Northern Rock
to the Chairman
Thank you for your letter of 21 November. I
set out to create a Board fit for the immediate purpose of discovering
the options available to Northern Rock and implementing the chosen
solution in the best interests of the creditors, shareholders,
employees and other stakeholders. I decided that a smaller committee
Board prepared to meet frequently and work with intensity for
some weeks/months was needed. Public spirited NEDs with an appropriate
skills mix and a track records for delivery were sought. No easy
task in the circumstances but I think with the addition of Messrs
Devaney, Laffin and Adams we have done well. No financial payouts
or incentives have been given to the four non-executive directors
who retired from the Board on 16 November 2007.
Executive Directors: in order to reduce the
total Board numbers to eight with a majority of NEDs available
for all meetings at short notice, I decided to reduce the Executive
Directors to two, ie the postholders of the CEO and CFO positions.
At the time of writing, no settlement has been
agreed with Mr Applegarth and it would be therefore be too early
to reply to your question other than to say that in the case of
Messrs Currie, Baker and Kuipers, they currently remain in employment
but have given up Board membership.
I have not yet had time to agree terms for executive
directors beyond those already in place. I will advice the committee
once agreement has been reached. I can assure you that we have
no intention of instituting large bonuses or payouts but contractual
obligations will of course be honoured.
6 December 2007