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| McKillop: no RBS pension 'ruse' | |
| (20 minutes later) | |
| Former RBS chairman Sir Tom McKillop has said there was no "elaborate ruse" to reward former chief executive Sir Fred Goodwin. | |
| Sir Fred left "at the request of the company with his full contractual entitlement" because of the need for a "consensual departure", Sir Tom said. | |
| "Each element of the proposed terms of departure" were discussed with City Minister Lord Myners, he added. | |
| Sir Fred's £703,000 pension has sparked much public anger. | |
| Sir Tom's comments followed Lord Myners' testimony to the Treasury Select Committee over Sir Fred's £703,000 pension. | Sir Tom's comments followed Lord Myners' testimony to the Treasury Select Committee over Sir Fred's £703,000 pension. |
| Lord Myners earlier acknowledged that he had known about Sir Fred's pension arrangements, but insisted he did not know about any discretion for the board in respect of paying that pension. | |
| 'Full disclosure' | 'Full disclosure' |
| Sir Tom said in his letter that the he and Bob Scott, the senior independent director, made a "full disclosure" of Sir Fred's compensation to Lord Myners. | Sir Tom said in his letter that the he and Bob Scott, the senior independent director, made a "full disclosure" of Sir Fred's compensation to Lord Myners. |
| I must emphasise that there was no "elaborate ruse" by myself and Mr Scott to give Sir Fred any more than he was contractually entitled to Sir Tom McKillop Sir Fred's fantastic expanding pension | I must emphasise that there was no "elaborate ruse" by myself and Mr Scott to give Sir Fred any more than he was contractually entitled to Sir Tom McKillop Sir Fred's fantastic expanding pension |
| "Mr Scott is certain that he discussed each element of the proposed terms of departure set out in the remuneration paper, including the pension," Sir Tom said. | "Mr Scott is certain that he discussed each element of the proposed terms of departure set out in the remuneration paper, including the pension," Sir Tom said. |
| "Mr Scott also gave Lord Myners... a range of £15m to £20m as being Mr Scott's best estimate of what the pension liability might be." | "Mr Scott also gave Lord Myners... a range of £15m to £20m as being Mr Scott's best estimate of what the pension liability might be." |
| Lord Myners earlier this month told the Treasury Select Committee that he had not been privy to "the thinking of the remuneration committee or members of that committee of RBS". | |
| In his letter, Sir Tom said: "I must emphasise that there was no "elaborate ruse" by myself and Mr Scott to give Sir Fred any more than he was contractually entitled to and that we and, I believe, all the directors acted in what we judged to be the best interests of the shareholders, including the Government." | In his letter, Sir Tom said: "I must emphasise that there was no "elaborate ruse" by myself and Mr Scott to give Sir Fred any more than he was contractually entitled to and that we and, I believe, all the directors acted in what we judged to be the best interests of the shareholders, including the Government." |
| Sir Fred took early retirement from RBS last year after the bank needed a £20bn bailout from the government. The payout has been widely condemned. | Sir Fred took early retirement from RBS last year after the bank needed a £20bn bailout from the government. The payout has been widely condemned. |
| Sir Fred's Edinburgh home was attacked by vandals last week. | Sir Fred's Edinburgh home was attacked by vandals last week. |