Last updated 11:43, Thursday, 24 July 2008

NORTHERN Rock has appointed the vice chairman of Barclays, Gary Hoffman, as its new chief executive.

Mr Hoffman replaces Andy Kuipers, who will leave on August 31 after 20 years at the Newcastle-based lender.

Mr Kuipers is the final member of Northern Rock’s original board to leave the bank after last year’s crisis.

Northern Rock was nationalised in February following the first run on a British bank in more than a century.

Mr Hoffman’s basic salary is £700,000 and he will also receive three separate payments of £400,000 in compensation for the loss of his participation in Barclays’ long-term incentive plans. “I am excited by the prospect of leading the company back to a position of strength,” Mr Hoffman said.

Mr Hoffman, 47, joined Barclays 1982 and previous roles include chairman of UK banking and chairman of Barclaycard.