Falied British Banker claims $1m pension at aged 50
By livewyre
@livewyre (2450)
March 13, 2009 10:50am CST
Sir Fred Goodwin managed to carve himself out a pension deal whilst the UK Government were contemplating how they were going to bail out his bank (RBS). If he had been sacked he would have got $600,000 (£416,000) a year - if the Govt had not bailed the bank out, he would have got $30,000 (£20,000). As it was, he was 'asked to leave' which entitled him to a jackpot pension of $1million (£703,000).
http://www.thecreditcruncher.com/2009/03/full-pension-revealed-at-703000.html
His recent track record is that he has been boss of the bank for ten years and has just led them to the very brink of bankruptcy before the government stepped in. What pension do you think he should be getting to enable him to retire at 50 after such a successful end to his career??
His contract is binding, but the government have vowed to change the law so that the taxpayer is not paying this incredible pension for the rest of this man's life - Is the Government right to change to law for just one man's pension??
2 responses
@benny128 (3615)
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13 Mar 09
to be honest his pension his between him and the bank
I do think its obscene that hes getting that much but he is only following the legislation and his employment contract.
If it was me in his position I would basically do what he is doing as that was his terms of employment if he had been sacked then great
but he wasnt so the banking system and goverment have only got them selves to blame.
@livewyre (2450)
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13 Mar 09
It was between him and the bank, now the British taxpayer is the majority shareholder it is between him and the nation... He and his boardroom cronies cooked up this pension whilst the RBS ship was sinking - it is not the sort of pension that a 'normal' worker gets...
I agree that Govt have missed a trick and they could have done something earlier, but let me reiterate that is is no longer between him and the bank because WE (The UK taxpayers) are the bank... it's all very well the Govt blaming themselves or anybody else they want - it is still us who will be keeping this loon in absolute luxury for ears to come
@benny128 (3615)
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13 Mar 09
i aint defending him but we have only just taken over the bank he has been earning the money and pension well before we the tax payer took over. Now fair enough bad lending has caused this but before the goverment took the bank over the bank had there own targets and lending criteria.
Unfortunatly it is the goverments and banks ridiculous mistake in not sacking him that has given him his pension.
Even if he was sacked he would still of got about half of what he is getting now.
Its a lesson I hope the goverment has learned by.
1 person likes this
@mummymo (23706)
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13 Mar 09
They most definitely are! I think it is a disgrace that not only has this man refused to take a cut in this mammoth pension despite being the worst boss ever but also that he didn't have his previous earnings clawed back to a certain extent! His contract may be binding but surely he broke his contract when he messed up the bank as badly as he has! xxx
@livewyre (2450)
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14 Mar 09
Sadly, he wheeled a deal for his pension as the ship was sinking so it was never going to be on performance...
The good news is that the RBS is being investigated for irregularities, they are bound to find something - they will no doubt be able to come up with a deal where he has to hand back something, or else they will just prosecute him if they find enough evidence - he could claim that he was being persecuted, but then some people could do with a bit of persecution..
1 person likes this
@livewyre (2450)
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16 Mar 09
Granted, neither is it my normal stance.. some cases are worth making exceptions for, and if the government are really going to go as far as legislating for one man's pension, that is a pretty clear exception to make.
I'm not sure that this is the correct way to use their legislative powers, but I think they have correctly sensed that Joe Public is not delighted with this scenario - it should be carefully handled as the whole thing could blow up in their face with Sir Fred looking like a victim. They need their best spin doctors on this one
