Rock boss quits Persimmon post

Oct 31 2007 by Chris Robinson, The Journal

NORTHERN Rock boss Adam Applegarth has quit his position as non-executive director of housing company Persimmon.

The chief executive of the North-East’s largest financial institution stepped down from the Persimmon role yesterday to focus on the struggling bank.

Mr Applegarth, who was paid £50,333-a-year at Persimmon, has in recent weeks been grilled by MPs over his handling of the crisis, which saw the mortgage lender apply for emergency funding from the Bank of England last month.

John White, chairman of Persimmon, said: “In his time on the board, Adam has made a significant contribution to the company, for which we are very grateful.

“Nevertheless, we understand his desire to focus fully on the issues at Northern Rock Plc, and we wish him well for the future.”

The Gosforth-based bank, which employs more than 5,700 people across the region, has until February to assess options for its future, including a sale.

It has received approaches from several groups, including US private equity firm JC Flowers and Sir Richard Branson’s Virgin Group.

Northern Rock chairman Matt Ridley resigned from his role two weeks ago and has since been replaced by Bryan Sanderson.

No one was available to comment at Northern Rock last night