Gary Hoffman has stepped down as chief executive officer (CEO) of Northern Rock plc, and from the board, with immediate effect.

He is to join NBNK Investments plc as CEO but will be on gardening leave from Northern Rock until 30 April 2011. In addition, NBNK has committed not to make a bid for Northern Rock plc for a period of 12 months from 1 November 2010.

Ron Sandler will revert from non-executive to executive chairman with immediate effect in order to provide continuity of leadership. Sandler was originally appointed as executive chairman of the former Northern Rock business when it entered public ownership in February 2008.

Sandler said: “The board recognises the role Gary has played in the rehabilitation of Northern Rock and thanks him for his significant contribution.””