Brown vows to claw pension back
Posted by michael on February 27, 2009
Gordon Brown has repeated his threat of legal action against ex-RBS boss Sir Fred Goodwin over his “unacceptable” £16m pension package.
The PM said he shared public “anger” at the size of the pension and was “considering every legal means at our disposal” to get some of it back.
Sir Fred has rejected pleas to return it, claiming ministers approved it.
In a way this anger is artificial, because ministers knew about the pension package before Goodwin resigned. Those who knew may have kept it quiet, but the government did know and could have stopped it before Goodwin had resigned!!
It would seem to me that there are two options available.
1) Goodwin could be pursuaded to give up this excessive pension in return for a more reasonable package which reflects the losses the bank has incurred
2) Brown brings in a law, similar to the windfall tax for companies, which is aimed at Goodwin and takes the pension fund away from him.
But I doubt that option 1 would happen, and I doubt that Brown would succeed with option 2.
It will probably end up as another example of the inability of this Labour government to get things right in the first place!
UK Voter said
These are two good suggestions, but as you say, it is unlikely either will happen. However, Gordon Brown could lead by example, if failure should not be rewarded, he should resign and give up his pension, come to that, so should the majority of his cabinet, starting with Jacqui Smith and Jack Straw.