Northern Rock - secret non-funding of Down's Society North East - by £40Bn Offshore based "structured Investment vehicle" ,monster pay , bank collapse

Private Eye have followed up today the connection between "Granite" the Down's Society North East and Northern Wreck. (click to enearge)
They also brought attention to the details of the agressive, go-go bonus scheme carefully crafted by the Chairwoman of the Remuneration Committee Nicola Pease pay as Non Exec. Director = £65K (Day Job CEO Hambro Capital Management) and her thoughtful colleagues including the brain of banking, Sir Derek Wanless who got £86K for troubling himself to attend the monthly Board Meetings and decide how the Exwecutive Diectors could hoover up cash and bonuses from the corporate trough.

So concerned are the Directors about how they get paid that their remuneration covers pages 20-31 of the 2006 year End Accounts.

The EXISTING REMUNERATION PACKAGE
In 2006 the Executive Directors’ remuneration package comprised:

• Basic salary, pension benefits and other benefits in kind, car, medical insurance, 3 Directors also had a concessionary mortgage dating back to the NR Bldng. Soc. etc.,;
• An annual cash bonus worth up to 100% of salary;
• A Deferred Share Scheme – with awards of shares equal in value to the cash bonus (i.e. up to 100% of salary) subject to the Company achieving real Earnings Per Share (“EPS”) growth of 3% p.a. over a three year period; (2006 payout 95%)
• A Bonus Matching Plan – where Executives could invest their cash bonus in shares and receive an award of Matching Shares (ie = doubling the bonus) of an equivalent value subject to the Company achieving real EPS growth of 3% p.a. over a three year period;
• A Long-Term Incentive Plan (“Old LTIP”) – with conditional awards of shares
worth up to 100% of salary subject to a TSR performance condition relative to other FTSE 100 companies.

Executive Directors are also eligible to participate in the Company’s all-employee share schemes
on the same terms as other employees. These schemes comprise:
(i) The Sharesave Scheme, a savings-related share option scheme available to all
employees;
(ii) The Employee Share Option Scheme, an H M Revenue & Customs approved share option scheme under which options have been granted to substantially all employees (although Executive Directors have elected not to participate); and
(iii) The Share Incentive Plan (“SIP”), under which the maximum value of free shares awarded to employees cannot exceed £3,000 per year. The value of share awards under this scheme is dependent on the Group’s profits.

Not satisfied with that, CEO Mr Applegarth, who pulled in Total pay of £1,36 Mn.in 2006 (up £200K - 18% on 2005) is also a Non-Executive Director of Persimmon Homes plc and was entitled to fees of £49,916 in respect of 2006.