View more on these topics

RBS chairman denies ‘elaborate ruse’ over Sir Goodwin’s pension

Former RBS chairman Sir Tom McKillop has denied Government claims that there was an ‘elaborate ruse’ between him and RBS senior independent director Bob Scott to pay former CEO Sir Fred Goodwin more than he was contractually entitled to.

In written evidence to Treasury Select Committee chairman John McFall, McKillop says Treasury Minister Lord Myners was made aware of what Goodwin’s pension arrangements would be.

In a recent TSC hearing, Myners said the RBS remuneration committee doubled Goodwin’s pension by “framing” Goodwin’s exit as a request to retire rather than a requirement to retire, meaning he could automatically be entitled to his full pension payout at 50.

But McKillop said: “Mr Scott is certain that he discussed each element of the proprosed terms of departure set out in the remuneration paper, including the pension.

“As well as referring to the undiscounted effect, and the consequence of early retirement and deemed service for the amount of the pension, Mr Scott also gave Lord Myners (in the conversation on 12 October 2008) a range of £15m to £20m as being Mr Scott’s best estimate of what the pension liability might be.”

McKillop also said that Lord Myners was “not correct” in saying that Scott indicated that disclosure of Sir Fred’s pension “could be spread over a couple of years to deflect adverse comment”.

McKillop added: “At no stage did Lord Myners or any other representative of the Government ask the RBS directors to attempt to alter any of the contractual terms relating to Sir Fred’s pension. Nor did Lord Myners attempt to discuss the matter with Sir Fred, as he did with the payment in lieu of notice.”

Recommended

TSC MPs call for Lord Myners to go

MPs in the Treasury Select Committee have reportedly called for embattled City Minister Lord Myners to resign after new evidence was submitted about Sir Fred Goodwin’s pension.

FSA stress test on Barclays boosts FTSE

The FTSE 100 gave a level start today opening on a par with Thursday’s close of 3,925 but shares boosted in early trades with hope that the FSA’s healthcheck on Barclays could keep it free from government intervention.

Skill bill

Sesame whole-heartedly supports the march towards higher professional standards but we must remain conscious of the need to improve consumer access to advice.

Thumbnail

Case study: administration — managing group life schemes

Our client leads the global market in high-tech electronics manufacturing and digital media. The trustees of the company’s final salary pension scheme insure death-in-service lump sum and dependants’ pension death benefits for active employees, as well as dependants’ pension benefits for deferred members (those who have left service).

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com