Goodwin's RBS pension row heats up: McKillop and Scott in lawsuit threat
Mar 04, 2009 | Comments 0
UK Financial Investments, who helps to manage the Government’s bank stakes, are thinking of taking legal action against Sir Tom McKillop, the former chairman of Royal Bank of Scotland (LON:RBS), as well as independent director Bob Scott for approving the £8 million pension top-up for Sir Fred Goodwin.
UKFI chief executive John Kingman has been giving evidence to the Treasury Select Committee, and said “Criticism should be directed at those who took the decision … The two key decision makers were the chairman and the chairman of the remuneration committee.”
Sir Fred is now receiving a pension of £703,000 a year; he will be able to draw his full stake 10 years early. It would have been better for Sir Fred to be fired from his job at RBS, as he would have only received a pension of £416,000, which would have been payable now.
Glen Moreno, the UKFI chairman said that the payment has now doubled Sir Fred’s pension pot to £16.9m, Moreno said it was a “reward for failure”.
Filed Under: Business News