RBS 2006 Annual Report Download - page 120
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RBS Group • Annual Report and Accounts 2006
Governance
The tables and explanatory notes on pages 119 to 124 report the remuneration of each director for the year ended 31 December 2006
and have been audited by the company’s auditors, Deloitte & Touche LLP.
Directors’ remuneration
Salary/ Performance Pension 2006 2005
fees bonus(1) allowance Benefits Other Total Total
£000 £000 £000 £000 £000 £000 £000
Chairman
Sir Tom McKillop (appointed Chairman on 28 April 2006) 471 ————47167
Sir George Mathewson (retired 28 April 2006)(2) 199 — — 1 — 200 607
Executive directors
Sir Fred Goodwin 1,190 2,760 — 46 — 3,996 2,893
Mr Cameron (appointed 1 March 2006) (3) 889 2,340 236 31 — 3,496 —
Mr Fish(4) 1,017 1,627 — 35 — 2,679 2,509
Mr Fisher (appointed 1 March 2006) (3) 654 1,105 122 13 — 1,894 —
Mr Pell 790 1,309 — 21 — 2,120 1,586
Mr Watt (resigned 31 January 2006) (5) 57 55 — 5 — 117 1,399
Mr Whittaker (appointed 1 February 2006) (6) 663 1,190 228 2 2,392 4,475 —
Notes:
(1) Includes 10% profit sharing. The performance bonus for Mr Cameron and Mr Fisher reflects their performance for the full year.
(2) From 28 April 2006, Sir George has been employed as an adviser to the Group. Under this employment agreement dated 26 April 2006, which runs until 31 July 2009,
Sir George received a fee of £179,000 for his services under this agreement in 2006, comprising £150,000 in respect of certain duties performed in the connection with the
handover of his responsibilities to Sir Tom McKillop in the three month period following the Annual General Meeting and thereafter at the rate of £75,000 per annum. Under this
arrangement he also received medical insurance, life assurance cover and secretarial and administrative support necessary for the performance of his duties.
(3) The above figures include remuneration paid to Mr Cameron and Mr Fisher prior to their appointment as directors. For this period, Mr Cameron and Mr Fisher received salary and
benefits of £141,000 and £105,000 respectively.
(4) Mr Fish is a non-executive director of Textron Inc. and retains the fees paid to him in this respect. For 2006, he received a remuneration package from Textron Inc. equivalent to
approximately US$84,974.
(5) Following his resignation as a director on 31 January 2006, Mr Watt remained employed by the Group until 28 February 2006 in order to facilitate a handover of duties to his
successor. For this period, Mr Watt received remuneration of £112,000, comprising £57,000 in respect of salary and benefits, and £55,000 in respect of performance bonus.
(6) Included in other remuneration for Mr Whittaker is an award of ordinary shares in the company of £1,000,000, a cash payment of £1,195,181 and relocation expenses of £197,211.
Board 2006 2005
Board fees committee fees Total Total
Non-executive directors £000 £000 £000 £000
Mr Buchan 65 55 120 109
Dr Currie 65 15 80 68
Mr Friedrich (appointed 1 March 2006) 54 15 69 —
Mr Hunter 65 93 158 113
Mr Koch(1) 65 — 65 55
Mrs Kong (appointed 1 January 2006) 65 8 73 —
Mr MacHale 65 30 95 80
Sir Steve Robson 65 30 95 80
Mr Scott(2) 155 100
Mr Sutherland 65 23 88 60
Notes:
(1) In addition to his role as a non-executive director, Mr Koch has an agreement with Citizens Financial Group, Inc. to provide consulting services for a period of three years
following the acquisition by Citizens of Charter One Financial, Inc. For these services Mr Koch receives $402,500 per annum.
(2) Mr Scott’s senior independent director fee covers all Board and Board Committee work including Chairmanship of the Remuneration Committee.
No director received any expense allowances chargeable to UK income tax or compensation for loss of office/termination payment.
The non-executive directors did not receive any bonus payments or benefits.