Re: Yet More People Scoffing from the Trough
I'm assuming that the £16 million is a notional amount, representing some sort of actuarial calculation of the cost of his annual pension**, so I'd guess that he hasn't got any of that money invested anywhere: it'll be part of the RBS pension fund.
While the RBS pension fund will have investments, they don't have to be safer than anywhere you and I could put our money. The portfolio will be mixed: as RBS has a large active workforce, there'll be quite a lot invested in shares, as well as bonds, gilts and - a recent trend - a few percent in one or more hedge funds. That's beside the point though: given that we're talking about a company pension scheme, the company - RBS - is required to make good - over time - shortfalls in the fund.
As we are guaranteeing RBS, ultimately this greedy, foolish and incompetent man has direct access to the money in my pocket and yours (while it lasts).
I hope this thought cheers you up for the rest of the day.
** - It is only about £1650 a day, and that's before tax.