Locals shocked at new N.Rock boss's pay

By Miyoung Kim

NEWCASTLE (Reuters) - Residents of Northern Rock's home town in northeast England reacted with fury on Monday to news the bank's new head will be paid 50 times the local average to oversee possible job losses and asset sales.

While Ron Sandler's 1 million pound salary may not be extravagant in comparison with other top banking executives, it dwarfs the local average of 20,800 pounds, and based on pay alone he now is worth three times more than the prime minister and Chancellor combined.

"It's a ridiculous amount," said 18-year-old Fay Vivien, standing outside the bank's headquarters in Newcastle.

Joyce Foster, who is retired, said: "He (Sandler) has a lot of work ahead of him but it (his salary) is way too much especially given the way it is going."

Locals were also angered that the government had let Northern Rock's troubles go on for five months before eventually deciding to bring it under state control on Sunday.

"It could have been sorted out in weeks rather than months," said 65-year-old Melvyn Charlton.

A housewife who declined to be named, said: "It has not been handled very well at all. They should have done it (nationalisation) straight away. They wasted too much time."

Many Geordies fear that nationalisation will mean widescale job losses among the bank's 6,000 staff and bring an end to the local charity work done by the bank's foundation which spends 5 percent of its annual profits on good causes.