Saturday, 4 April 2009

More on Sir Fred

Sir Fred’s pension continues to cause anger. Yesterday, RBS shareholders voted overwhelmingly against Sir Fred’s large pension payout. Sir Fred is fully entitled to his pension, as it was in his contract of employment. The shareholders have no powers to alter that decision. Legally he is not doing anything wrong. Morally however, many people are disgusted with his intransigence in insisting on keeping the full amount, given the global fiasco caused by the banking system. On the BBC breakfast programme Simon Fanshawe commented that Sir Fred would be ostracized from polite Edinburgh society, which apparently is a fate worse than death.
The RBS has announced further job losses, but the current chairman Sir Philip Hampton stated that he will ‘leave no stone unturned’ to find a legal loop-hole in the pension issue. This will no doubt cost a fortune in legal fees. Sir Fred’s behaviour could be seen as imprudent, as he could become a target for further violence, and his decision not to capitulate could prove to be reckless.

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