UK - Unions are targeting Lloyds TSB and building materials firm Hanson over the size of their departing chief executives' pension pots.
Lloyds TSB’s departing chief executive Peter Ellwood has received a £1.15m cash injection into his scheme despite a 40% fall in the firm’s share price.
And Hanson’s former chief executive Andrew Dougal is getting a £636,700 pension payout, despite the company closing its final salary scheme to new members in July last year.
Financial services union Unifi said: “The closure to staff of DB schemes, transferring into inferior money purchase schemes or asking for additional staff contributions – essentially a pay cut – makes it impossible to justify the massive pensions being taken by some of the fat cats.”
But Hanson defended its actions: “This isn’t a question of payments for failure. The payments were in accordance with his contract and the board was obliged to meet its obligations.”
Lloyds TSB added: “The pension is part of the overall package that we have to attract, retain and motivate high calibre executives.”
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