UKFI accuses RBS board over Sir Fred’s pension
by Gill Montia
Story link: UKFI accuses RBS board over Sir Fred’s pension
In the latest development in the public row over the pension entitlement of former Royal Bank of Scotland chief executive, Sir Fred Goodwin, UK Financial Investments (UKFI) has blamed the RBS board for allowing a discretionary payment that could amount to £16 million.
UKFI is the body that oversees the taxpayer’s interest in UK banks that have needed government support.
In an appearance before the Treasury Select Committee, its chief executive, John Kingman, stated that the government was not told that the pension payment was in any way discretionary.
He went on to accuse the RBS board of not sharing material facts with Lord Myners, the Financial Services Secretary, who has been heavily criticised for his part in allowing Sir Fred to be rewarded for failure.
The terms of Sir Fred’s departure from RBS were dealt with hurriedly during the October phase of the banking crisis, when ministers worked out a recapitalisation package that eventually left RBS 68% state-owned.
The deal was dependent on the departure of the bank’s chief executive and chairman, and the events have since been described by Sir Fred as less of a negotiation and more of a “drive-by shooting”.
Question is, by whom?
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