Sir Fred's £1 gift to RBS shareholders

THE average shareholder in Royal Bank of Scotland will only save £1 from the reduction in former boss Sir Fred Goodwin's pension.

The RBS Shareholder Action Group welcomed the reduction in Sir Fred's pay-out, to £342,500.

But it said that it won't provide any comfort for the Edinburgh-based bank's shareholders, who have suffered hefty financial losses on the value of their shares.

Many shareholders bought shares in RBS and other banks to provide for their retirement and have seen their capital and income virtually wiped out.

Roger Lawson, director of the RBS Shareholder Action Group, said: "The amount RBS will save on Sir Fred's pension is equivalent to about £1 per shareholder per year. Hardly a significant sum in relation to the overall finances of the company and the losses those shareholders have suffered.

"This is one reason why we consider this a mere distraction in comparison with the key issues the company needs to address."