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| Version 5 | Version 6 |
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| Huge pension for former RBS boss | Huge pension for former RBS boss |
| (about 2 hours 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. |
| "UK Financial Investments, which manages the government's shareholding, has been working with the new chairman and the new board to see what scope there may be for clawing back some of this payment," Treasury Minister Stephen Timms said, after the BBC informed the Treasury of the pension arrangements. | "UK Financial Investments, which manages the government's shareholding, has been working with the new chairman and the new board to see what scope there may be for clawing back some of this payment," Treasury Minister Stephen Timms said, after the BBC informed the Treasury of the pension arrangements. |
| Sir Fred Goodwin's pension draws an angry response from two Treasury Committee members | Sir Fred Goodwin's pension draws an angry response from two Treasury Committee members |
| John Park, Labour member of the Scottish Parliament for Mid Scotland and Fife, said: "It is morally wrong for Sir Fred Goodwin to receive such a huge pension when so many workers at RBS are facing redundancy." | John Park, Labour member of the Scottish Parliament for Mid Scotland and Fife, said: "It is morally wrong for Sir Fred Goodwin to receive such a huge pension when so many workers at RBS are facing redundancy." |
| "At the very least, it should be stopped and any pension payments frozen until he reaches normal retirement age." | "At the very least, it should be stopped and any pension payments frozen until he reaches normal retirement age." |
| 'Legal advice' | 'Legal advice' |
| Michael Fallon, a Conservative MP on the Treasury Committee, said the government should not have allowed the payments to go ahead in the first place. | Michael Fallon, a Conservative MP on the Treasury Committee, said the government should not have allowed the payments to go ahead in the first place. |
| "Ministers must have known this when they took over the bank back in October," he said. | "Ministers must have known this when they took over the bank back in October," he said. |
| 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 href="/1/hi/business/7910146.stm"> class="" href="/1/hi/business/7911722.stm">RBS reports record corporate loss | |
| "They must have known what his pension arrangements were. They have had since October to get this sorted out. That pension should have been stopped. | "They must have known what his pension arrangements were. They have had since October to get this sorted out. That pension should have been stopped. |
| 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." |
| 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. |
| 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." |