Nationalised bank Northern Rock has announced the appointment of Barclays director Gary Hoffman as its chief executive.

The 47-year-old joined Barclays in 1982 and has held a number of senior roles, including chief executive and chairman of Barclaycard.

His appointment means Northern Rock chairman Ron Sandler will revert to a non-executive role.

Northern Rock said Mr Hoffman's basic annual salary will be £700,000, plus any entitlements from a new incentive scheme due later in the year.

He will also be compensated for the loss of various Barclays long-term incentive programmes. As a result, he will receive three separate payments of £400,000 each, the first on the commencement of his new job in October.