Myners ‘knew of Goodwin pension’

By staff

Royal Bank of Scotland executives did not attempt to cover up Sir Fred Goodwin’s pension, according to former chairman Sir Tom McKillop.

In a letter to the Treasury select committee, Sir Tom dismissed claims Lord Myner was unaware of the £700,000-a-year pension Sir Fred would receive on leaving the bank, which generated a public outcry.

Sir Tom insists he and senior independent director Bob Scott met with Lord Myners on the weekend RBS was rescued by the government and discussed the departure of Sir Fred.

According to Sir Tom, “there was no ‘elaborate ruse’ by myself and Mr Scott to give Sir Fred any more than he was contractually entitled to”.

Although the government appeared concerned Sir Fred, who has been blamed for the bailout of RBS, should not take a payment in lieu of notice, pension terms were not discussed, the letter stated.

“At no stage did Lord Myners or any other representative of the government ask the RBS directors to attempt to alter any of the contractual terms relating to Sir Fred’s pension,” Sir Tom explained.

Full disclosure relating to the pension was made to the government, and Lord Myners was warned in a meeting that the benefit would be “enormous,” Sir Tom said.

Lord Myners was even given an estimate of the total pension liability in the range of £15-20 million.

But Lord Myners told a committee hearing earlier this month that he did not ask Sir Tom for details of Sir Fred’s pension during the meeting on October 11th.