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.”
This week's edition of Professional Pensions is out now
MPs failed to place legislation into the Financial Guidance and Claims bill that would have made pension guidance default, which Just Group director Stephen Lowe said left a "bitter taste".
Aegon has called for the government to double the tax exemption on employer-arranged pension advice, up from £500 to £1,000.
Institutional investor confidence in Europe rose by 8.9 points in April with each region showing growing appetite for risk, according to State Street Global Exchange.