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RBS has no record of specific questions by Myners on Goodwin’s pension

Royal Bank of Scotland says it has no record of any specific questions posed by City minister Lord Myners over the terms of Sir Fred Goodwin’s pension.

In written evidence to the Treasury select committee, RBS group general counsel and secretary Miller McLean reveals that Goodwin’s pension would have been £416,000 per annum if he had been dismissed by the board rather than granted early retirement.

As a result of being given early retirement, the current value of Goodwin’s pension is £703,000 per annum.

McLean reveals that the terms of Goodwin’s pension were in the public domain as the company accounts set out the terms for all executives leaving the company and Goodwin’s pension terms do not seem to be any different to these.

The letter also revealed that the compromise agreement sealing the terms of Goodwin’s departure were signed at 3am on October 13 last year by RBS non-executives.

The RBS directors who negotiated the agreement with Goodwin included former chairman Sir Tom McKillop, independent director Bob Scott, human resources director Neil Roden.

McLean writes that Lord Myners was told McKillop’s pension pot would be in the region of £15-£20m, but no alternative terms were proposed to the Myners.

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