Lord Myners under attack over RBS pension award

by Gill Montia

Story link: Lord Myners under attack over RBS pension award

Former Royal Bank of Scotland (RBS) chairman, Sir Tom McKillop, has written to the Treasury Select Committee denying that the bank’s board acted surreptitiously over the pension award to disgraced RBS chief executive, Sir Fred Goodwin.

Both Financial Services Secretary, Lord Myners, and UK Financial Investments, the body set up to oversee taxpayers’ interests in banks, have blamed RBS’s board for awarding Sir Fred a pension package that could cost over £16 million.

However, Sir Tom has now accused Lord Myners of being “unfair and unjustified” in his assertion that he was unaware that part of the award was discretionary and that RBS directors had concealed the facts.

According to Sir Tom, the RBS board could not have dismissed Sir Fred last October, when the bank came close to collapse, because an orderly handover to new chief executive, Stephen Hester, was essential.

Sir Fred therefore retired at the request of the board and the pension award was based on an early retirement package.

In his letter to MPs, the former chairman also stated that Lord Myners had been fully aware of the size of Sir Fred’s pension pot and that the proposed terms of Sir Fred’s departure were fully discussed with him.