RBS 2009 Annual Report Download - page 236

RBS Group Annual Report and Accounts 2009234
Directors’ remuneration report continued
Medium Term Performance Plan (MPP)
The MPP was approved by shareholders in April 2001. Key executives (Management Committee members and above) are eligible for an annual award
under the plan in the form of share or share equivalent awards. Whilst the rules of the plan allow awards over shares worth up to one and a half times
earnings, the Remuneration Committee has adopted a policy of granting awards based on a multiple of salary. No changes will be made to this policy
without prior consultation with shareholders. The intention is that no further awards will be made under the MPP, instead awards will be made under
the new long term incentive plan, if approved by shareholders. Details of the long-term incentive plan can be found on pages 226 and 227.
Market Sheme interests End of period
Scheme interests Awards price on Awards Awards (share for qualifying
(share equivalents) at granted award vested in exercised equivalents) at conditions to
1 January 2009 in 2009 £ 2009 in 2009 31 December 2009 be fulfilled
Stephen Hester — 4,800,000 0.37 4,800,000 22.06.12
Gordon Pell 138,384 5.85 — lapsed
305,177 2.97 305,177 31.12.10
443,561 305,177
Guy Whittaker (1) 128,134 5.85 — lapsed
277,525 2.97 — lapsed
405,659 —
Bruce Van Saun (2) — 1,810,611 0.57 1,810,611 22.06.12 (3)
Notes:
(1) Awards held at 30 September 2009 when Guy Whittaker ceased to be a director. All outstanding awards lapsed following cessation of employment.
(2) Awards granted on 8 September 2009 when Bruce Van Saun joined the Group. He was appointed as a director on 1 October 2009.
(3) End of qualifying period 22 June 2012, however award unavailable for exercise until 8 September 2012, 3 years from date of award.
For any awards that have vested, participants holding option-based awards can exercise their right over the underlying share equivalents at any time
up to ten years from the date of grant.
No variation was made to any of the terms of the plan during the year other than introducing a clawback provision for awards made in 2009.