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| Version 1 | Version 2 |
|---|---|
| Goodwin offers to reduce pension | Goodwin offers to reduce pension |
| (10 minutes later) | |
| Former Royal Bank of Scotland chief executive Sir Fred Goodwin has offered to reduce his highly controversial pension by £200,000 a year. | |
| It would cut the value of his pension pot by about £4m. He has taken a lump sum of £2.7m, but the deal would still leave him with £350,000 a year. | |
| The offer to cut his pension came under a threat of legal action from RBS. | |
| BBC business editor Robert Peston says the bank is likely to accept Sir Fred Goodwin's offer. | BBC business editor Robert Peston says the bank is likely to accept Sir Fred Goodwin's offer. |
| The question is whether the government, which owns 70% of RBS, will accept it. | The question is whether the government, which owns 70% of RBS, will accept it. |
| Ministers may oppose the deal because it would still leave Sir Fred with a bigger pension than he would have received if he had been dismissed instead of leaving on agreed terms. | Ministers may oppose the deal because it would still leave Sir Fred with a bigger pension than he would have received if he had been dismissed instead of leaving on agreed terms. |
| The Treasury declined to comment on the offer. | |
| He did a deal with the bank in October 2008 that allowed him to take his full pension of £703,000 a year at the age of 50 without having to take a reduced rate for claiming it early. | |
| RBS almost collapsed while Sir Fred was in charge of it as a result of a combination of the credit crunch, bad debts and the weight of the debt from his acquisition of ABN Amro. |