no he didnt. surely not. ceo's and chairman dont do things like that. they have the best interests of the investor and pensioners at heart. sounds familiar ( countrywide ).?? Northern Rock boss sold £2.6m of shares while urging employees to keep buying · MPs allege Applegarth used cash for luxury cars · Calls for board to resign before more loans granted David Hencke, Westminster correspondent The Guardian Thursday November 15 2007 MPs and small shareholders launched an attack yesterday on Adam Applegarth, chief executive of Northern Rock, for selling over £2.6m of shares at peak prices while still urging thousands of employees and investors to buy shares when the company was facing trouble. Chris Huhne, the Liberal Democrat leadership candidate, called on the Treasury to demand that Applegarth and the rest of the directors resign before loaning the stricken bank any more cash. He said: "I am appalled that the Treasury should still continue to give billions of pounds of cash to the very directors who have got the company in this mess in the first place." Kevan Jones, Labour MP for Durham North, many of whose constituents work for the bank, said that he was astounded at the "short-termism" of Applegarth and his fellow directors in selling millions of pounds of shares "while encouraging employees and small investors to still put their money into the company". Applegarth made two large share sales last year and this year, raising just over £2.6m. He was also paid £1.3m last year: half as a basic salary and half in bonuses. Robin Ashby, a spokesman for some 100,000 small shareholders, who include the former police chief Lord Stevens and Sir Neville Trotter, the former Tory MP for Tynemouth, said: "While the directors were cashing in shares worth millions of pounds before the company got into trouble, they left small shareholders and employees who have remained loyal to Northern Rock for more than a decade facing financial ruin. They obviously had no long-term faith in the company." MPs have also criticised Applegarth's lifestyle after alleging he used some of the cash to purchase luxury cars - an Aston Martin for himself and a Ferrari for his wife - as well as a Northumberland estate. Northern Rock was rescued by the Bank of England with a loan in mid-September. It is in the process of being sold, with bidders facing a deadline tomorrow. The bank strongly defended Applegarth yesterday. A spokesman said: "Adam Applegarth continues to work relentlessly to address the challenges facing the company and to manage the strategic review process. This will continue to be the primary focus for the chief executive and the rest of the board. "The remuneration package for directors is entirely transparent. Share incentives reflected the growth in the company. The chief executive still retains a significant shareholding in Northern Rock and has this year invested in a large number of new shares. "Participation in sharesave schemes is entirely optional and a matter for the individual. The uncertainties of the stock market are clearly set out before staff subscribe to the scheme and ... anyone wishing to leave such a scheme is entitled to all of their money back at any time." The criticism of Applegarth's share sales, which has also been expressed privately by the bank's union, Unite, follows two sales in 2006 and 2007. On one day last year, Applegarth sold 111,426 shares for £1.06m and in January he sold a further 135,963 shares for £1.62m at near their peak price of £11.98. Northern Rock shares have since slumped to a low of nearly £1; yesterday they closed at 139.2p. Gordon Brown, the prime minister, and the chancellor, Alistair Darling, also came under fire in the Commons yesterday over the bail-out of Northern Rock. George Osborne, shadow chancellor, said the collapse of Northern Rock had done "long-term serious damage to Britain's reputation for stability". Accusing ministers of refusing to reveal all the facts behind the collapse, Osborne demanded: "When are we going to hear about the future plans for Northern Rock?" Vincent Cable, the acting Liberal Democrat leader, asked for an assurance from Brown that the loan would be "paid back in full, with interest, in the lifetime of this parliament". Brown said the "secured lending" was guaranteed against Northern Rock assets, but declined to comment on reports in the Guardian that not all the interest would be paid back, claiming "commercial confidentiality http://www.guardian.co.uk/business/2007/nov/15/northernrock.banking
Good article! but we have seen this all before around here..... I know you fellas in the USA might be shocked to learn the English (brits) behave in such ways, but we in Australia are VERY familiar with such behaviour from the English (brits). They think that their 'plum in mouth' accents give people the impression that their 'shit doesn't stink' but the brits are as corrupt and duplicitous as the filthiest Russian. BEWARE