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Sacked banker to get £650,000-a-year pension

By Naved Akhtar     Feb 26, 2009 in Business
Disgraced former boss of Royal Bank of Scotland (RBS), Sir Fred Goodwin has refused to give up a £650,000 a year pension despite widespread outrage.
50-year-old, Sir Fred has written to the government rejecting requests to give back his pension stating that ministers agreed to the deal and has said that he is “furious” that the details of his £16 million pension pot were leaked.
Chancellor Alistair Darling has said that the government had been under the impression that the deal was legally binding when it was agreed in October. The government are now looking into the possibility of legal action to get some of the money back.
This leak has come out on the same day that the RBS has announced that its 2008 loss totalled £24.1 billion which is actually the largest annual loss in UK corporate history. The government has agreed to guarantee up to £325 billion of the bank’s toxic loans in return for more shares which could take the taxpayers’ holding up to 84 per cent. There is also a chance that the future performance of the bank could result in the taxpayer owning 95 per cent of the bank.
RBS chief executive, Stephen Hester has also announced that around 20,000 jobs could be axed at the bank as part of a five-year survival plan.
More about Rbs, Government, Bank bailout, Pension
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