Time to stop this public flogging - RBS chief

But he also called for an end to "the public flogging" that the bank has received.

Hampton told shareholders and employees at today's annual meeting in Edinburgh that they must brace themselves for further massive job cuts on top of the 2700 already announced.

He revealed that the board is taking new legal advice over the controversial £703,000-a-year pension given to Goodwin immediately on his departure earlier this year.

He said: "I understand many shareholders will wish to vote against or abstain on the advisory vote on the Remuneration Report to register strong disapproval of the pension arrangements of our former chief executive.

"Legal advice is being taken about whether the decision that was reached can be revisited. Whatever the outcome of that advice, it is in no-one's interest, least of all RBS Group's, for this issue to go on and on."

The meeting will see the Government, through its UK Financial Investments (UKFI) holding vehicle, vote down RBS's remuneration report.

The body will reject it because the previous board granted Goodwin and investment banking head Johnny Cameron, full pensions despite them retiring early.

UKFI chief executive John Kingman said: "UKFI is not satisfied that it was in the company's interest — and therefore UKFI's as a value-oriented shareholder. UKFI therefore cannot vote in favour of it."

This vote will not stop Goodwin's pension. It is a symbolic gesture, as it is an advisory vote and not legally binding on the company.

But Hampton made it clear that he believes Goodwin made bad decisions. In particular he blamed the £50 billion takeover of Dutch bank ABN Amro in 2007 for the UK bank's collapse.

He said: "I don't think there can be any doubt that the key decision that led RBS to its difficulties was the acquisition of ABN Amro."

He also attacked other decisions of the previous management, including its multi-million pound sponsorship of Formula 1 and ownership of a private corporate jet which new chief executive Stephen Hester has put up for sale.

Hampton told hundreds of angry shareholders who have lost more than 80% of their investment in the company that he wanted to restart paying them dividends "as soon as practicable".

He said he could not predict how many more RBS staff would lose their jobs, but warned that the axe would fall both in this country and overseas.

RBS made the biggest loss in UK corporate history last year when bad debt charges of £7 billion and writedowns of £16.2 billion left it with a pre-tax deficit of £24.1 billion.

That forced it to seek a £20 billion Government bailout. A separate meeting today will see the taxpayers' stake in the bank rise from 58% to 70%.

Security at today's meeting was intense after G20 protesters smashed up an RBS branch in the City of London this week.