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Topics: RBS| Liberal Democrats
Beleaguered RBS is to pay out a pension even larger than Sir Fred Goodwin's controversial £12.3m retirement pot.
Gordon Pell, deputy CEO of the bailed-out bank, will receive a pension of £582,000 a year from his £13.58m pot.
Last year, public outcry over Goodwin's £17m pension saw him agree to cut it to its current level. He will receive an inflation-protected income of £342,500 a year; compared to the £555,000 he was originally promised.
Pell's pension was increased by £65,000 a year in 2009 according to the bank's annual reports, despite RBS making a loss.
Up until now, Pell has escaped much of the criticism surround RBS's near-collapse, but he was closely involved in the bank's disastrous takeover of ABN Amro.
Pell will retire this month, and has waived his 2009 bonus, but Liberal Democrat politicians have criticised his pension payout.
Lib Dem Treasury spokesman, Lord Oakeshott, says: "If we hadn't bailed out RBS, they would have to rely like every other bust business on the miserable pensions financial assistance scheme."
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RBS Pension
There should be no reason for him not to take a reduced pension like Mr goodwin did, it is a disgrace that tax payers money has provided such a huge benefit to this individual, and yet all the other individuals that have been affected by their lending policies get nothing. If he has any morals or understands his level of responsibility, he should have no issues in reducing his pension provision
Posted by: Darren McKeever
RBS PENSION
What happened to lifetime allowances, or do they only apply to people in the real world.
Posted by: SU
Just ask yourself
Are you jealous? Would you have done the same, given the opportunity? Would you now choose to give it up? Shame is a curious beast.
Posted by: Charles Brand
no, not jealous, just weary
Charles, in my view there is a big difference between accepting the remuneration package that is offered to you, and setting that remuneration package in the first place. Do I blame the bankers/traders for accepting the sums that they have in relation to their activities? No. Do I blame the board members (including this gentleman) who set these ridiculous levels of pay? Yes, definitely. It's not just financial sevices industry, it's all of Great Britain PLC. The whole "internationally competitive" argument is completely spineless and grossly overstated.
Posted by: colin
A very odd situation
Sir Fred Goodwin said his pension pot was empty, and UK Govt.gave him £16bn to fill it up, so he could still have his huge pension. Deputy CEO Gordon Pell's pension pot is full with the necessary £13.58m to buy him a pension of £582,000. This is very odd, it makes one wonder whether Fred's pot was empty.
Posted by: Colston Hicks
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same old same old
blah blah blah, stay competitive in an international job market, competitive pay to retain the best, etc, etc. No one is worth this much money unless they're personally taking the entreprenuerial risk, in which case, good luck to them. The enormous gravy train, fuelled by the self-righteous indignation of everyone with their flabby snouts in the trough rumbles on. Business, tragically, as usual.
Posted by: colin