RBS AGM: see the archive of our live coverage of the event

Sir Fred Goodwin, the disgraced former chief executive of Royal Bank of Scotland (RBS), is not considering reducing his £16.9 million pension pot despite claims made earlier today by Sir Philip Hampton, the bank's chairman.

Sir Philip said today, ahead of the bank's much-anticipated Annual General Meeting: "I’ve asked Sir Fred if he would consider a voluntary reduction and he’s told me he’s thinking about that.”

However, according to Sky, sources say that Sir Fred is not contemplating reducing his retirement fund, despite what it appears is a second request from Sir Philip. Sky is 39.1 per cent owned by News International, a UK subsidiary of News Corporation, parent company of The Times.

Today is not the first time that Sir Philip has said Sir Fred is considering a voluntary reduction in his pension.

When RBS unveiled the largest ever UK corporate loss of £24.1 billion on February 26, he said: “I've asked Fred – I’ve phoned him up actually – a few weeks ago …and asked him if given the events that have unfolded whether he would make a voluntary reduction in his pension.

"He told me he would think about it and, as of today, I think he’s still thinking but I haven’t had a direct answer back from Fred.”

The conversation took place some time before the bank released its results and in the interim, a political storm erupted about Sir Fred's pension, prompting a letter from the former RBS chief to Lord Myners, the City Minister, telling him he would hold on to his entire retirement fund.

It is understood that he has resumed his dialogue with Sir Fred since the letter and the two are thought to have last talked about his pension about a week ago.

In the letter, Sir Fred refused to surrender his £703,000-a-year pension, despite the public outcry about his receiving such a large package amid a £20 billion government bailout.

Sir Fred said: “While I suspect that you will not now agree with it, I hope that you can understand my rationale for declining your request to voluntarily reduce my pension entitlement”, which is estimated to be worth a total of about £17 million.

Since writing to Lord Myners, Sir Fred has had his car and house attacked amid growing public resentment against the bankers who fuelled the recession.

Last week, vandals attacked Sir Fred’s £3 million home in Edinburgh, putting a brick through his window and damaging his car in the incident.

Sir Fred is understood to be considering leaving the country to escape the backlash, in particular over concerns about the safety of his children.

Gordon Brown is among the senior figures to condemn the former bastion of British business. On February 27, he said: “The behaviour in RBS…is something that makes me angry and will make the public of the country angry…we are going to clean up the banks so this doesn’t happen again.”

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive