Northern Rock chief gets £1.3m

According to the bank's annual report, 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. The total pay compares with the 1.1m Mr Hoffman received from Barclays in 2007 and the 645,000 received from Northern Rock in 2008 – when he worked for the bank for three months – including the first 400,000 payment linked to the compensation package.

Mr Hoffman, whose pay package makes him one of Britain's best paid civil servants, agreed to join the UK lender – which made a 383m loss in 2009 – in July 2008 but started work in October.

The report published yesterday by Northern Rock Asset Management – what is referred to as the "bad bank" of risky assets split off from the lender's "good" bank this year – said Mr Hoffman would receive his last 400,000 Barclays-related compensation instalment in October 2010.