RBS Concocted ‘Ruse’ Over Goodwin Pension
Tuesday, March 17, 2009 7:37
Today, Parliament learnt that the board of RBS devised “an elaborate ruse” in order to conceal the scale of former chief executive Sir Fred Goodwin’s pension terms.
The explosive allegation was made by the Treasury Minister—Lord Myners, as he sought to deflect blame for the doubling of Sir Fred’s pension benefit to £16.6 million on the October weekend when taxpayers were tapped for £20 billion in rescue capital.
On the Treasury Select Committee, Lord Myners told MPs that neither the RBS chairman—Sir Tom McKillop, nor the senior independent director—Bob Scott, show him the full picture.
Lord Myners also said that he was told of a threatened board walkout if Sir Fred had been forced to resign. According to Lord Myners, the board, or at least some directors, were “bending over backwards to be generous to Sir Fred“. As a result, Sir Fred was allowed to go as a “good leaver“, which triggered the key clause that doubled the lump sum value of his pension to £16.6 million.
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