This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7911532.stm
The article has changed 11 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Huge pension for former RBS boss | Huge pension for former RBS boss |
| (30 minutes later) | |
| Sir Fred Goodwin, the former chief executive of Royal Bank of Scotland, is already drawing a pension of £650,000 a year, despite only being 50. | Sir Fred Goodwin, the former chief executive of Royal Bank of Scotland, is already drawing a pension of £650,000 a year, despite only being 50. |
| The BBC has learned that the pot that generates his pension is worth £16m. | The BBC has learned that the pot that generates his pension is worth £16m. |
| Sir Fred's strategy and decision to buy ABN Amro is widely seen as making the bank more vulnerable to the credit crunch and having to be bailed out. | Sir Fred's strategy and decision to buy ABN Amro is widely seen as making the bank more vulnerable to the credit crunch and having to be bailed out. |
| RBS, which is 70% owned by taxpayers, is expected to announce the UK's biggest corporate loss on Thursday. | RBS, which is 70% owned by taxpayers, is expected to announce the UK's biggest corporate loss on Thursday. |
| When giving evidence to the Treasury Committee on 10 February, Sir Fred said: "My pension is the same as everyone else in the bank who is in a defined benefit pension scheme. It is determined in the same way as anyone else." | When giving evidence to the Treasury Committee on 10 February, Sir Fred said: "My pension is the same as everyone else in the bank who is in a defined benefit pension scheme. It is determined in the same way as anyone else." |
| The disclosure that he's set up very nicely for life will spark some controversy Robert Peston, BBC business editor Read Robert Peston's blog class="" href="/1/hi/business/7910146.stm">RBS to report record loss | |
| But few other employees of RBS are understood to be able to draw their pension at the age of 50, although BBC business editor Robert Peston says that his entitlement to a pension at 50 if he was asked to leave the bank, was put in place some years ago and was applied to other directors. | But few other employees of RBS are understood to be able to draw their pension at the age of 50, although BBC business editor Robert Peston says that his entitlement to a pension at 50 if he was asked to leave the bank, was put in place some years ago and was applied to other directors. |
| UK Financial Investments, the offshoot of the Treasury which manages taxpayers' stakes in our big banks, was informed of Sir Fred's pension entitlement by the BBC. | UK Financial Investments, the offshoot of the Treasury which manages taxpayers' stakes in our big banks, was informed of Sir Fred's pension entitlement by the BBC. |
| "Since they became aware of this issue UKFI have been vigorously pursuing with the new chairman whether there is any scope for clawing back some or all of this pension entitlement, and whether the board took the decision in the full knowledge of the facts," UKFI said in a statement. | "Since they became aware of this issue UKFI have been vigorously pursuing with the new chairman whether there is any scope for clawing back some or all of this pension entitlement, and whether the board took the decision in the full knowledge of the facts," UKFI said in a statement. |
| "This is another example of the culture of rewards for failure that we are determined to sweep away for the future." | "This is another example of the culture of rewards for failure that we are determined to sweep away for the future." |
| RBS also issued a statement, saying: "The company is taking further legal advice in respect of certain aspects of Sir Fred Goodwin's contractual arrangements and continues to discuss the position with UKFI." | RBS also issued a statement, saying: "The company is taking further legal advice in respect of certain aspects of Sir Fred Goodwin's contractual arrangements and continues to discuss the position with UKFI." |