RBS deputy to receive £517,000-a-year pension

The last member of former Royal Bank of Scotland boss Fred Goodwin's failed top team is set to leave the group with a £517,000 (€585,529)-a-year pension.

The last member of former Royal Bank of Scotland boss Fred Goodwin's failed top team is set to leave the group with a £517,000 (€585,529)-a-year pension.

Deputy chief executive Gordon Pell, who earned £908,000 (€1m) last year, will retire from the part-nationalised British bank early next year at the age of 60 with a pension pot worth £9.8m (€11.1m).

Following the announcement of finance director Guy Whittaker's departure yesterday, Mr Pell is the last survivor from the board which oversaw the bank's ill-fated expansion - including the acquisition of ABN Amro in 2007.

Mr Pell, who joined RBS in 2000 after spending most of his career at Lloyds TSB - now merged with HBOS - was responsible for the company's UK retail banking arm.

He will be replaced by Brian Hartzer, who joins from Australian bank ANZ.

In other management changes announced by RBS, Paul Geddes, the current chief executive of the UK retail division, will lead its insurance business, which includes Churchill and Direct Line.

Insurance boss Chris Sullivan will move to become chief executive of the corporate banking division.

The changes will mean that all nine members of the bank's executive committee will be new in post within the last 14 months, with seven joining since last October when the bank was propped up with £20bn (€22.6bn) from the British taxpayer.

Chief executive Stephen Hester said: "I am extremely pleased to have been able to move rapidly to assemble a strong leadership team. We have many challenges ahead but really great businesses on which to build."

RBS was forced to write off billions on the ABN Amro deal and soaring bad debts. The taxpayer now owns more than 70% of the bank.

The public sector is also exposed to billions more in potential losses after RBS placed hundreds of billions of toxic debts in a British Treasury-backed insurance scheme - which could see the British taxpayer stake in the bank rise as high as 95%.

RBS, which will give its latest trading update on Friday, announced up to 9,000 job cuts in April as the firm looks to make £2.5bn (€2.8bn) in cost savings over the next three years.

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