Sir Fred Goodwin lands big job with leading architect

Sir Fred Goodwin joins 'Rum-Jum' chief executive Peter Morrison

The fallen banker, whose multi-million-pound pension pot made him a public hate figure at the height of the financial crisis, will travel to the Far East and China, advising the company on expansion plans. While his salary has not been disclosed, it is thought to come with a profit share. He will not receive any pension contributions.

It will be his first job since leaving RBS 15 months ago.

The news means the two men who were at the top of RBS have both found new employment. Former chairman Sir Tom McKillop was given a job on the board of pharmaceutical giant UCB in November.

Sir Fred was driven into exile in the south of France after being forced to resign during the effective nationalisation of what was once the world's biggest bank. But he has since returned to Edinburgh in an attempt to rebuild his professional career.

Despite apparently being offered a host of more lucrative posts, Sir Fred plans to dedicate himself to expanding RMJM, which has 14 offices around the world and whose buildings include the Scottish Parliament, the Falkirk Wheel and the planned Gazprom Tower in St Petersburg, Russia.

Chief executive Peter Morrison said: "I am delighted to welcome Fred to RMJM and look forward to him becoming an integral part of our established advisory team."

The Scotsman understands the former banker's unpopularity with the public and controversial image – he was dubbed "Fred the Shred" during his time at Clydesdale Bank – was taken into account.

An RMJM spokesman said: "Prior to making any decision, we consulted widely with a number of key clients, key advisers and a few figures within the business. The response to the prospect of bringing him on board was overwhelmingly positively received."

The firm began courting Sir Fred back in October and he began work shortly before Christmas. As chief executive of RBS, Sir Fred was chauffeur-driven to Gogarburn, the bank's 350 million global headquarters, in whose construction and design he took great interest. Today, he drives himself to meetings at RMJM's more modest Edinburgh headquarters by the Water of Leith.

He is expected to spend more than a week per month flying to the company's various corporate offices. Where previously he had the use of a private jet, he will now, like other senior executives, settle for business class. As an insider said last night: "It is the only job he will be doing – it will be demand-led, but he will be very busy. His passport will be well stamped."

RMJM had no connection with RBS – the firm was not involved in the construction of Gogarburn and it is understood to bank with Lloyds. Its other advisers include Dr Vladimir Kvint, an economist and strategist; Dr Spiro Pollalis, professor of design technology and management at the Harvard Design School, and Dr Brian Lang, former principal of the University of St Andrews. It is understood Sir Fred's remuneration is in line with his fellow advisers; RMJM refused to disclose the figure.

Dubbed the "world's worst banker" after RBS was saved by the government and posted a loss in 2008 of 24.1 billion – the largest annual loss in UK corporate history – Sir Fred became a figure of hate and his home was vandalised, after it was revealed he had walked away from the wreckage with a pension pot worth 16m, or 703,000 a year. He later agreed to reduce it to 342,500 a year.

A company insider said: "Within business circles, he is a guy who is widely respected for his achievements in building RBS to become a global force. The global economic crisis cannot be laid at the door of any one man."

Alan MacDougall, of Pensions Investment Research Consultants, said: "In one sense, it's a fitting appointment, since Sir Fred was one of the architects of the UK banking crisis. Many people will be amazed this now means both the former chief executive and chair of RBS are back in paid employment barely a year after the bank they ran almost collapsed.

"Notably, the role is not with a publicly listed company where the appointment would surely have been challenged by shareholders who lost money in RBS."

Eric Chalker, of the UK Shareholders Association, said: "Any comment we would make would be related to his time at RBS and I'm sure we would not wish him without occupation for the rest of his life, so I can't think that we could make a constructive comment. I don't think we would like to take this opportunity to be rude about him."

Yet, according to one psychologist, Mr Goodwin, despite his previous success, will struggle like any other new recruit with the demands of his new job and he is being advised to dispense with the corporate aggression that coloured his previous role.

Ben Williams, an Edinburgh-based chartered corporate psychologist, said: "He is moving out of his comfort zone and so he will feel vulnerable and he will cover this very carefully with an air of confidence and so forth, but basically, in the initial stages, anyone going into a new job feels slightly vulnerable. He is going to have to build some relationships and establish loyalties. He will have to trust people, perhaps more than he has ever done in the past.

"I understand that he had a reputation for being rather aggressive and very independent with his decision making, so he is going to have to listen much more effectively and build trust by trusting others rather than going alone."

Publicist Max Clifford said: "All I have ever heard in recent months is that he is still considered public enemy number one, so if you were going to take on anyone like that, then you would have to assume that the company must thrive on controversy and that, as far as they are concerned, all publicity is good publicity."

Sir Fred was unavailable for comment.

Career change – how they compare

RBS – 2007

Established: Edinburgh 1727

Pre-tax profit: 10.3 billion, up 9 per cent

Staff: 135,000

Offices: 700 branches

Takeovers: Part of consortium to buy Dutch Bank ABN AMRO in 2007

RMJM – (most up-to-date figures)

Established: Edinburgh 1957

Pre-tax profit: 7.9 million, up 97per cent (2008)

Offices: 14

Takeovers: Bought US Hiller Architecture practice in 2007