LONDON (Reuters) - Former Royal Bank of Scotland (RBS.L) chief executive Fred Goodwin was paid 1.3 million pounds last year, and his controversial pension was exceeded by that of the former head of RBS’s U.S. business, the bank said.
RBS’s annual report, released on Monday, showed the value of Larry Fish’s pension fund was $27 million when he retired at the end of April, up from $24.1 million just four months earlier.
That will give Fish, 64, an annual pension of $2.2 million. He is the former chairman and chief executive of RBS’s U.S. arm Citizens.
RBS has twice had to be rescued with UK taxpayer funds, which will leave the government with a stake of at least 70 percent and as much as 95 percent.
The report confirmed Goodwin will receive an annual pension of 693,000 pounds, news of which provoked a fierce political and public backlash about “rewards for failure” when it emerged last month.
Goodwin’s pension fund was 16.6 million pounds at the end of 2008, up from 8.4 million a year earlier, following an agreement in October when Britain took a majority stake and he was ousted.
Goodwin, 50, was contractually entitled to an immediate pension with no discount for early payment, the report said, adding RBS will not apply this provision in the future.
Goodwin did not receive any bonus and was paid his base salary of 1.3 million pounds for 2008, down on a salary and bonus of 4.2 million in 2007.
Tom McKillop, the former chairman who has also been criticised for his running of the bank, was paid 787,000 pounds, up from 750,000 in 2007.
Reporting by Steve Slater; Editing by Greg Mahlich