RBS 2010 Annual Report Download - page 256

Risk underpin and clawback
The Remuneration Committee will also review financial and operational performance against the Strategic Plan and risk performance prior to agreeing
vesting of awards.
If the Remuneration Committee considers that the vesting outcome calibrated in line with the performance conditions outlined above does not reflect the
Group's underlying financial results or if the Committee considers that the financial results have been achieved with excessive risk, then the terms of the
awards allow for an underpin to be used to reduce vesting of an award, or to allow the award to lapse in its entirety.
All awards are subject to clawback.
2011 compensation framework
The chart below summarises the 2011 compensation framework (illustration for the Group Chief Executive):
In order to comply with the FSA Code, shares will be subject to a holding period of six months after vesting.
Subject to clawback prior to vesting
Share
Bank
(6 million
shares)
LTIP
(up to
400% of
salary)
50%
50%
100%
1year
performance
0% to 100%
2012 2013 2014
Salary
3year
performance
0% to 100%
2015
2011
RBS Group 2010254
Directors’ remuneration report continued
Share
Bank
(6 million
shares)
Salary
2011 2012 2013
2013
2014 2015
1 year
performance
Subject to clawback prior to vesting
50%
(0% to 100%)
3 year
performance
(0% to 100%)
50%
Allocation to bank LTIP Allocation
LTIP
(up to
400% of
salary)
100%
Cash Shares Shares