A rise Sir Fred
RBS boss gets £11m MORE
GREEDY Sir Fred "The Shred" Goodwin stands to rake in an extra £11million from his outrageous pension pot.
The former RBS chief - who sparked fury over a £17 million "golden handshake" despite overseeing £24 billion of losses - is likely to earn £28 million from his retirement fund.
An investigation by independent pension consultant John Ralfe shows Goodwin's earnings will almost certainly swell when factors like inflation are factored in.
He said: "His total pension pot from the age of 51 to expected death is about £16.9 million. This is a gross understatement.
Largest
"If I wanted to go to a pension provider and get the pension Fred Goodwin is on, and it's £700,000 and goes up with inflation, I would have to pay something in the order of £28 million.
"That is one of the largest pension pots any chief executive has accumulated. Not only was it generous but he was able to draw it as a 50-year-old and that's what makes it so extraordinary."
The nation was stunned when Goodwin's package first came to light, having been approved by ministers late last year despite his failings leading to RBS needing a £20 billion taxpayer-funded rescue. But an investigation by Channel 4's Dispatches programme obtained contracts from leading bank bosses. And it reveals some lavish details.
In 2004 Goodwin had a basic salary of £900,000-and he was entitled to bonuses of up to 200 per cent. He was also given 365 days sick leave entitlement.
Lloyds chairman Victor Blank had a salary of £550,000 for just a two or three day work week. He also had access to a chauffeur. His struggling bank received £5.5billion in taxpayers' cash.
Over the six years Adam Applegarth was boss of Northern Rock he earned just under £4million plus almost £2.5million in bonuses-despite overseeing the bank's collapse which led to nationalisation. He got £118,000 in "extras", which can include things like medical insurance.
There was also a pension pot of £2.6million. When he retires he will get £5,800 a week.
The programme also shows the close ties between Labour and the City. Honours lists from 1998 to 2009 show there were 19 knighthoods, MBEs, CBEs or OBEs for "services to banking".
Dispatches, tomorrow, at 8pm.
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This article has 2 comments
How can fred get 365 sick day entitlement a year ? how does that policy work ? I have been off with depression for 27 weeks and I have been basically told that I need to decide if I am going back or leaving.
By star. Posted May 20 2009 at 5:46 PM.
We can thank Mr Prudence himself for this, Gordon Brown is the cause and they both deserve nothing. Brown will go on to be a respected member of the city while we struggle to pay for the debt he created for us.
By Steve Tea. Posted May 17 2009 at 2:34 PM.