Northern Rock staff bonus boost

The Northern Rock was nationalised on 21 February

Northern Rock staff could be in line for bonuses of up to 60% of their annual salary over the next few years.

The Newcastle-based bank confirmed there was a company-wide incentive to reward staff if targets in paying back a £26bn government loan were met.

A spokeswoman said the scheme applied to all 4,000 remaining staff, subject to certain qualification criteria.

Bonuses would only be paid out if the objectives were achieved, with no payments made before March 2009.

She added: "The scheme we've introduced is entirely aligned to the business plan and the repayment of the government loan.

"It's ensuring the objectives of staff align with the objectives of the company.

"They will only get bonuses if the objectives are achieved."

'Massive turmoil'

Workers could receive an extra 10% of their salary when a quarter of the loan is repaid in 2008 and another 10% if three-quarters is paid off in 2009.

When the loan has cleared, they face a further 15% and another 25% of their salaries when Northern Rock is eventually returned to the private sector.

However, this final payment would be subject to the board's discretion.

The move has been welcomed by the Unite union.

Deputy general secretary Graham Goddard said: "Staff have worked through a year of massive turmoil and change in order for the bank to achieve its corporate objectives and return the money borrowed from the government.

"Unite welcomes the recognition of their hard work through the bonus scheme."