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'Disgust' at new job for Sir Fred | |
(about 4 hours later) | |
Royal Bank of Scotland shareholders have criticised the appointment of Sir Fred Goodwin by the architectural firm RMJM in Edinburgh. | |
The consultancy role will be his first job since leaving RBS after the government bailed it out 15 months ago. | |
Roger Lawson, from the RBS Shareholder Action Group, said it was "ironic" Sir Fred got a job when others were losing theirs in the recession the banks made. | |
Independent MSP Margo MacDonald said her reaction was "faint disgust". | |
Michael Connarty, Labour MP for Linlithgow and East Falkirk, said it was a "very odd appointment". | |
Sir Fred, who was born in Paisley, was in charge at the bank for nine years and steered it from being a bit-part player to one of the top five in the world. | |
He built up the bank with numerous acquisitions but the problems started when RBS bought the Dutch bank ABN Amro at the height of the boom in 2007. | |
Numerous acquisitions | |
Mr Lawson's shareholder group is pursuing a legal claim against RBS for its £12bn rights issue in May 2008. | |
That RBS share sale for 200p per share was made five months before the near collapse of the bank and its rescue by taxpayers. | |
The bank is now 83% controlled by the UK government, with shares having collapsed by 95% since their high point in 2007. | |
Sir Fred retired from RBS in September 2008, aged 50, with a controversial pension of £700,000 per year - a figure which has been subsequently reduced. | |
One must question whether the folks who are hiring him are prudent - given that his reputation will proceed him everywhere he goes Roger LawsonRBS Shareholder Action Group | |
Mr Lawson said: "It's ironic that he's managed to get a job when others are being let go - and in a recession which banks are responsible for. | |
"One must question whether the folks who are hiring him are prudent - given that his reputation will proceed him everywhere he goes." | |
Sir Fred - dubbed "Fred the Shred" - has been appointed as a senior adviser with architectural practice RMJM, where he began work just before Christmas. | |
It was involved in designing the controversial Scottish Parliament building, though the current management had no involvement in that project. | |
Sir Fred will be based in Edinburgh but will spend the vast majority of his time overseas. | |
He will not be on the RMJM board but will join four or five other members of the senior advisory panel of the business. | |
Mr Connarty said: "People wonder what he knew about banking and will now wonder what he knows about building." | |
Pay package | |
The Labour MP added: "There is a deep irony that one the architects of RBS's downfall is now working for the architects involved in the Holyrood building fiasco." | |
Ms MacDonald said: "One of the things that people objected to, and I think with good reason, was the size of Mr Goodwin's pension pot. | |
"It now transpires that he is not really pensioned off at all, he is quite capable of earning money with another company." | |
The company would not comment on Sir Fred's pay package, though said it was in line with that of the existing senior advisers to the business. | |
A source close to RMJM said: "He is going to be working on international projects. | |
He said Sir Fred has brought an "invaluable skill set" to RMJM. |