February 26, 2009

Britain asks RBS exec to cut pension pay

British Chancellor of the Exchequer Alistair Darling Thursday said a former Royal Bank of Scotland executive should return some of his pension pay.

Darling said the government was looking at legal steps it could take to have former Chief Executive Officer Fred Goodwin return some of his $931,000-a-year pension pay, the Financial Times reported Thursday.

You cannot justify these excesses, Darling said. In the circumstances in which this bank is now in, do you not think it right that you should forgo this?

Darling said the government had lawyers looking into this but also said Goodwin could resolve the issue quite quickly "¦ on a voluntary basis.

With the RBS 70 percent owned by the government due to billions of taxpayer dollars given in a bank rescue effort, Stephen Timms, the Treasury minister, said the pension was an example of rewards for failure.