The Government was fully aware of the terms of Sir Fred Goodwin's controversial £703,000 a year pension, according to Royal Bank of Scotland's former chairman.
Sir Tom McKillop, chair of RBS until it was taken into partial public ownership last year, says Treasury minister Lord Myners was fully briefed on Goodwin's pension arrangements.
He claims there was no 'elaborate ruse' to trick the Government, despite ministers claiming they were told the pension was a legally enforceable arrangement.
In a letter to the Treasury Committee, McKillop says Lord Myners was made aware of "each element of the proposed terms of departure set out in the remuneration paper, including the pension".
Myners was also told the total pension arrangements would be worth around £15m to £20m, McKillop claims.
However, earlier this month, Lord Myners told the Treasury Committee he was not aware of the value of Sir Fred's pension when the decision was made in October.
The Treasury Committee's investigation into the circumstanced surrounding the pension will continue.
Contact: John Bakie, Tel: 020 7484 9805, e-mail: [email protected]IFAonline
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