Sir Fred Goodwin and an Employer’s Right to Claw Back Bonus

Tughans Solicitors outline the steps required to vary employees' terms and conditions of employment.

The refusal of the former Royal Bank of Scotland Chief Executive, Sir Fred Goodwin, to give up his £693,000 annual pension has sparked controversy in recent weeks with former ally Gordon Brown calling on him to waive at least some of his entitlement. Whilst Mr Goodwin insists his pension pot was fairly agreed, there are claims that the RBS Board was not aware that the award was discretionary and that the majority shareholder in the bank, the Government, had not been fully appraised.

The argument has culminated in a suggestion that legislation should be introduced ensuring that the pension