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Fred the Shred's pension is outrageous'

PUBLISHED: 15:28 04 March 2009 | UPDATED: 10:30 23 August 2010

Sir Fred Goodwin, Chief-Executive Officer of the Royal Bank of Scotland, speaks on his mobile phone as he leaves the Edinburgh International Conference Centre after attending the Bank's Annual General Meeting, on April 23, 2008. The Royal Bank of Scotland said Tuesday it would raise fresh funds of almost 24 billion dollars to shore up its finances after huge subprime-related writedowns and the blockbuster takeover of Dutch giant ABN Amro.

Sir Fred Goodwin, Chief-Executive Officer of the Royal Bank of Scotland, speaks on his mobile phone as he leaves the Edinburgh International Conference Centre after attending the Bank's Annual General Meeting, on April 23, 2008. The Royal Bank of Scotland said Tuesday it would raise fresh funds of almost 24 billion dollars to shore up its finances after huge subprime-related writedowns and the blockbuster takeover of Dutch giant ABN Amro. "The proposed rights issue will raise proceeds of 12.0 billion pounds (15 billion euros)," Britain's second-biggest bank said in a statement announcing the country's largest-ever offer of new stock and at a very heavy, near 50 percent discount. AFP PHOTO/ED JONES (Photo credit should read ED Jones/AFP/Getty Images)

2008 AFP

ANGRY residents and MPs have blasted the whopping £703,000 a year pension handed to a former banking boss as outrageous and ludicrous . Sir Fred Goodwin, 50, the former head of the now crippled Royal Bank of Scotland, has so far rejected calls by the

ANGRY residents and MPs have blasted the whopping £703,000 a year pension handed to a former banking boss as "outrageous" and "ludicrous".

Sir Fred Goodwin, 50, the former head of the now crippled Royal Bank of Scotland, has so far rejected calls by the prime minister and other political leaders to give up some of the money.

The bank has been bailed out with billions of pounds of taxpayers' cash and announced losses of £24 billion just last week. Gravesham MP Adam Holloway said the pension fiasco was a result of the initial bank bail-outs.

He said: "I had no idea these people get such huge sums of money. It is a symptom of what has gone wrong with the bank bail-outs. It was done to increase lending again, and that simply hasn't happened. We should have made better deals in the first place to stop this happening."

Howard Stoate, MP for Dartford said: "I am completely outraged that somebody who effectively caused huge financial losses should be taking away this amount of money. Everything possible should be done to stop Fred Goodwin getting the full pension."

Joanne Markham, 55, of Northfleet, said: "It is absolutely outrageous. He is the boss of a failed bank, why should he deserve this? We should look at getting it stopped, at least some of the money."

Michael Fallon, MP for Sevenoaks and deputy chairman of the Treasury Select Committee, added: "This amount of money is absolutely ludicrous. It could easily have been prevented, ministers just did not do enough to stop it.

"It is public money, for life, and it is wrong. The minimum pension he could receive is just £27,000 a year and I think that would be more appropriate."

What you had to say...

Window cleaner John Ball, 41, of the Avenue, Gravesend: "It's an awful lot of money, look at the state of the world, and yet we have people getting so much cash. It seems very excessive. I don't think a lot of us could spend that much in a lifetime."

Aaron Taylor, 22, of Codrington Crescent, Gravesend, is unemployed. He said: "It is taking the p*ss. Why should he get that massive amount of money? He hasn't done anything special for this country so why should he get it?"

Retired Frank Shepherd, 61, of Waterdales, Northfleet, said: "Morally it is wrong, but all of the fat cats are getting big pay offs. If we weren't in the credit crunch, then we probably wouldn't worry about it."

Denny Stuart, 45, of Raphael Road, Gravesend: "It is an extortionate amount of money. I don't think he really deserves it."

Akram Chaudry, 64, of High Street, Gravesend, is a social worker. He said: "Everyone is annoyed about it. He is owed some pension obviously, but does he really think he deserves that much.

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