Breaking news on BBC - Fred Goodwin refuses reduced pension

redux

mrposhman wrote: »

Remember he didn't set his pension, he was provided it as part of a benefits package that has to be agreed by a remuneration committee and the entire board of directors.

Whats more (and I know nothing of the pension scheme at RBS) this is probably a normal pension scheme that many others in RBS also belong to so he probably hasn't "created" a fantastic scheme for himself and only himself.

Finally and probably the most important part is that he will have contributed to his own pension scheme from his once again remuneration committee agreed remuneration package.

Most remuneration packages also include share options, to ensure people get a just reward for their efforts

Someone clever should find a way to should enforce puts on him and his pension.

In other words, he has to buy his shares at the price he was promised before they fell in value.

That should wipe out a few of his millions, and is entirely proportional to his record at the company.

MrFonzerelli

Fred has been stitched up like a kipper:D. The Treasury got him to leave quietly without redundancy by giving him a generous pension, and now they're going to take that away.:rotfl:

nightwatchman

He should be lured in York on pretence of a bit of archery practice or for a medieval theme fancy dress party.
Thus the mob that will lynch him will not have to answer to the law.


From The world's strangest laws courtesy of The Times see here no 6

http://business.timesonline.co.uk/tol/business/law/article2251280.ece

<H1 style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: 14.4pt">6. In the city of York, it is legal to murder a Scotsman within the ancient city walls, but only if he is carrying a bow and arrow.

</H1>

baileysbattlebus

Why don't they convert his pension pot to RBS shares - they might in years to come be worth something.

Apart from the government, where were the RBS directors and non executive directors? Or were they complicit in this?

Below is an extract from a Guardian article - link at the end

The Goodwin row has prompted a number of further revelations:
• The £16m pot was twice the sum reported in the last annual report. And the pensions consultant John Ralfe questioned whether the pot was actually £25m to pay out £693,000 a year.
• Johnny Cameron, the RBS executive who ran the loss-making investment banking division, also had a pension top-up to take his pot to £1.5m.
• Larry Fish, who ran RBS's US operations, has a £1.4m a year pension payout.
• The former HBOS chief executive Sir James Crosby, who left three years ago aged 50, is entitled to a £572,000 annual pension when he reaches 60.
• Many HBOS executives who lost their jobs in the Lloyds takeover took a one-year salary entitlement and other benefits.

http://www.guardian.co.uk/business/2009/feb/26/sir-fred-goodwin-pension

Page 109 of the RBS annual accounts for 2007 states the company's policy clearly.

Had he been sacked, Sir Fred would have been given a year's notice, or the equivalent of his annual salary of £1.2 million.

ghostbusters

I dont believe he should be attacked for his response. I suspect if I was in his position I would be unwilling to pay anything back.
If any one is to blame it is the government and big shareholders themselves for poor and lax corporate governance.
The people who could have done something about renumerations are the managers of our pension funds.
Did we care how much these company executives got paid as long as they drove the share prices up and the value of our pensions went up?
.... Not really I suspect...

vivatifosi

I think that they should probably let the pension issue go (unless there is yet more to come out on this) and focus instead on sending a squad of forensic piranhas into RBS to look at every little detail for evidence of fraud or negligence. Let's not forget that RBS has already had to settle a lawsuit for its role (albeit on the fringes) of the Enron scandal.

If they find anything at all then they should then throw the book at him and the other board directors.

Wookster

vivatifosi wrote: »

I think that they should probably let the pension issue go (unless there is yet more to come out on this) and focus instead on sending a squad of forensic piranhas into RBS to look at every little detail for evidence of fraud or negligence. Let's not forget that RBS has already had to settle a lawsuit for its role (albeit on the fringes) of the Enron scandal.

If they find anything at all then they should then throw the book at him and the other board directors.

I think the appropriate laws must be followed. You can't have mob justice, simply because people want it.

If there is a legal way to recover the discretionary payment go for it, with full weight of the law but if not, then that's a screw up and we have Crash & AD to blame.

The rule of law is far more important than £8M...

matthewcb

vivatifosi wrote: »

I think that they should probably let the pension issue go (unless there is yet more to come out on this) and focus instead on sending a squad of forensic piranhas into RBS to look at every little detail for evidence of fraud or negligence. Let's not forget that RBS has already had to settle a lawsuit for its role (albeit on the fringes) of the Enron scandal.

If they find anything at all then they should then throw the book at him and the other board directors.

This would be a good idea, except you just know this government would appoint their usual brand of investigator, such as David Walker (aka Mr Whitewash).

mark13

I dont think i would want to forfeit my pension. !!

mrposhman

redux wrote: »

Most remuneration packages also include share options, to ensure people get a just reward for their efforts

Someone clever should find a way to should enforce puts on him and his pension.

In other words, he has to buy his shares at the price he was promised before they fell in value.

That should wipe out a few of his millions, and is entirely proportional to his record at the company.

if you read his letter, as part of his leaving "package" he wasn't allowed to take up his stock options so they've already sorted that one out.