Former Royal Bank of Scotland chief executive Sir Fred Goodwin has bowed to public anger over the size of his pension by agreeing to give up more than £200,000 a year of the controversial reward. Goodwin, who left the bank in October when RBS had to be bailed out with £20bn of taxpayers' money, was originally awarded £703,000 a year when the bank was rescued by the government last year.
Goodwin, who left the bank in October when RBS had to be bailed out with £20bn of taxpayers' money, was originally awarded £703,000 a year when the bank was rescued by the government last year.
Here's the maths. His enhanced pot at the end of 2008 was worth £16.6m. Without the enhancement, the pot would have been worth £10.2m (this is not a number that has ever been published). The gap between the two is therefore £6.4m. Today he is giving up £4.7m. And in October he gave up around £2m in contractual pay and further associated pension contributions.
His enhanced pot at the end of 2008 was worth £16.6m.
Without the enhancement, the pot would have been worth £10.2m (this is not a number that has ever been published).
The gap between the two is therefore £6.4m.
Today he is giving up £4.7m.
And in October he gave up around £2m in contractual pay and further associated pension contributions.
while it is the case that RBS's internal review found no evidence of wrongdoing or misconduct by Sir Fred, the bank was advised by leading counsel that there was a reasonable legal basis for suing him for the return of some of the pension pot - and Sir Philip Hampton, RBS's chairman, told Sir Fred he was happy to seem him in court.
(too much american tv, i know...) ~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~
