The Royal Bank of Scotland seems to be having trouble managing their employee’s affair. Here the only difference is that, that employee was earlier the Chief Executive of the bank and is a high profile man, whose pension amount is a bit too much for the bank to afford this season.
And Sir Fred Goodwin aint making things any easier for the bank by refusing to pay back his pension. Goodwin who retired “early” on the behest of the bank is eligible to a hefty pension according to a certain clause in the banks employment contract. This contract states that in the pension scheme, if a certain individual retires early for the company’s good, he or she will be entitled to receive a pension based on accrued service without any discount applied for early retirement.
As a result of this clause the bank’s former Chief Executive draws a pension of £693,000. This is ironical to say the least and an unfortunate situation for the bank since, in this recession hit period, the bank, is showing the highest corporate losses in the history of UK. Although the former bank chief seems to increasing his pension every month, the bank is handling heavy losses.
The second course of action after refusing to pay the pension amount back is the blame against the Treasury minister. Sir Fred has defamed the treasury minister of lying and twisting his story, and also of refusing him his severance package. Sir Fred said that after speaking to lord Myners, the Treasury minister, in October, he was told to waive off his salary for a year, which was in turn deemed to be sufficient for him to get his due severance after retirement. Fred did agree to it, but has now blamed the minister of not giving his severance package efficiently.
The BBC has reported that here is a lot of political brouhaha about Sir Fred and they specifically want him to cut his pension amount.
But Sir Fred has his own say and he refuses to acknowledge the pension back since, he believes that the government had a fair idea about his severance package, and has no right to complain now, or to take away his pension.
