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4 Mar 2009

Full pension revealed at £703,000

The full extent of Sir Fred's pension has now been established and recorded as being a staggering £703,000 pa - The reason that he is 'entitled' to this money (in law) is that he was asked to stand down, rather than having his contract terminated.
If his contract had been terminated with 12 months notice, his pension would have been £416,000 pa, and may have only started in ten years time when he reaches retirement age of sixty. In effect, if this pension were payable until, for example aged 75 Goodwin would have received a total of (15x£416k) £6.25m over fifteen years. As it stands now, he could receive (25x£703k) £17.5m by the time he reaches the venerable old age of 75 - naturally the longer he continues to draw pension, the more this spirals...
The fact remains that failure by the government to step in to bail out the bank would have meant a mere £20,000 a year pension - which is still not bad for a fifty-year-old who has steadily guided a major financial house over the brink of self-destruction.
Sir Fred would do well to offer to hand back his rights to his current contracted pension, and offer to swap it for the £416k deal as if he had been sacked - this would surely take the wind out of the governments sails and make them look like they are seeking a scapegoat if they didn't accept? However the smell of £703 guaranteed for the next 10 years and beyond in retirement is possibly clouding his judgment (assuming he still has a degree of judgment). I would still be more than happy if he got the £20,000 but that's just sour grapes, in reality he could turn this around very quickly by standing down from his current position. He could earn some support if he decides to take on the government, but it looks like a fight he can only lose. In fact the worrying thing is that he, the treasury and the wider government could ALL come out of this very badly if he decides to take Gordon on...

Related Post:
Sir Fred not to benefit


Beat The Credit Crunch said...

This pension equates to £1800 per day! Just imagine what most of us could do with that in a month - especially during these hard times.

Beat The Credit Crunch

jay said...

I wouldn't mind...I would happily wait til I was 65 if my pension was going to be that good, never mind 50!