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Cash for axed bosses

Directors of the Derbyshire will receive hundreds of thousands of pounds in redundancy pay following its merger with Nationwide.

A merger notification statement sent by the mutual and seen by Mortgage Strategy reveals that Graham Picken, chief executive of the Derbyshire, will be made redundant on August 31 next year. He will receive a payout of up to 153,291.

Tom Wood, finance director of the Derbyshire, is set to leave the firm three months after the merger is finalised on December 1 and will receive a payout of up to 322,312.

But the mutual’s specialist lending director Brian Carney and retail director Andrew Thorpe will leave as soon as the merger is ratified, walking away with 290,327 and 258,209 respectively.

A spokesman from the Derbyshire says: “The directors are not going to receive any merger bonuses. These payments are legal entitlements under their contractual obligations.”

A spokeswoman for Nationwide says: “The payments to the directors are no more than the legal and statutory obligations to which they are entitled.

“Under the Building Societies Act 1997, directors aren’t allowed to receive a bonus for mergers.

She adds: “Remuneration committees from the Derbyshire and the Cheshire decided the level of remuneration and this decision had nothing to do with us.”


Stay in shape for the future

I’m getting old. I have meetings with bright people, look around the room and notice I’m the oldest person present. This is not only depressing but also worrisome as I think it behoves those who run firms to be students of history – especially the history of their own sector. One of the most-heard quotes is ‘History has to repeat itself because nobody ever listens’ and one of the roles a good trade body plays is to provide a sort of race memory – to be able to call on collective insight about what happened the last time the market went down so quickly and what the solutions were to those problems.

Arrears under the microscope

Recent arrears and repossessions data obscure as much as they reveal about the underlying quality of the mortgage book in the UK. The decision by the Financial Services Authority to release more detailed disaggregated data is to be warmly welcomed and if nothing else, keeps the Council of Mortgage Lenders on its toes.

No luck for the Irish economy

The Irish economy fell into recession in Q2 2008 after the Republic’s GDP growth slumped to -0.8%.


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