UKFI registers protest vote against Fred Goodwin's RBS pension

Mar 31 2009 by Alun Thorne, Birmingham Post

The public body which owns a majority stake in Royal Bank of Scotland said it would register a protest vote against Sir Fred Goodwin’s controversial £703,000 pension at the bank’s annual meeting on Friday.

UK Financial Investments will reject the remuneration report of the bank because the board decided to grant Sir Fred and another director, Johnny Cameron, full pensions despite retiring early.

UKFI chief executive John Kingman said: “UKFI is not satisfied that it was in the company’s interest - and therefore UKFI’s as a value-oriented shareholder. UKFI therefore cannot vote in favour of it.”

The bumper pension for Sir Fred has sparked huge outrage after taxpayers poured in £20 billion last year to prop up the bank, which posted a record £24.1 billion loss for 2008. Sir Fred’s Edinburgh home and car were vandalised last week. The decision to reject the remuneration report is more symbolic than meaningful as it is an advisory vote and not binding on the company. UKFI said it intends to vote in favour of all other resolutions at the meeting.

“UKFI fully supports the approach the present RBS board is taking to remuneration matters, including in relation to the remuneration arrangements for the present chairman and chief executive,” Mr Kingman added.