RBS 2010 Annual Report Download - page 263

Medium-Term Performance Plan (MPP)
The MPP was approved by shareholders in April 2001. No further awards will be made under the MPP.
Scheme interests
(share equivalents)
at 1 January 2010
Market
price on
award
£
Awards
vested in
2010
Awards
exercised
in 2010
Scheme interests
(share equivalents)
at 31 December 2010
End of period
for qualifying
conditions to
be fulfilled
Stephen Hester (1) 4,800,000 0.37 4,800,000 22.06.12
Gordon Pell (2) 305,177 2.97 — lapsed
Bruce Van Saun (3) 1,810,611 0.57 1,810,611 22.06.12
Notes:
(1) Stephen Hester has voluntarily agreed to retain any shares that he receives for a further two years past the vesting date.
(2) Awards held at 31 March 2010 when Gordon Pell ceased to be a director. This award was subject to performance conditions which were not achieved.
(3) End of qualifying period 22 June 2012, however award unavailable for exercise until 8 September 2012, three years from date of award.
No variation was made to any of the terms of the plan during the year.
Restricted Share Award
Awards held at
1January 2010
Awards
granted in
2010
Marke
t
price on
award
£
Awards
vested in
2010
Marke
t
price on
vesting
£
Value o
f
awards
vested
£
Awards held at
31 December 2010
End of period
for qualifying
conditions to
be fulfilled
Stephen Hester 5,506,987(1) 0.48 469,064 0.4491 210,657
695,167 0.4368 303,649
879,458 0.3814 335,425 3,463,298 21.11.08 - 29.05.11
1,221,374(2) 0.48 610,687 0.4050 247,328 610,687 21.11.09 - 21.11.11
6,728,361 2,654,376 1,097,059 4,073,985
Philip Hampton (3) 5,172,413 0.29 5,172,413 27.02.12
Notes:
(1) Awards to replace bonus and share awards Stephen Hester forfeited on leaving The British Land Company PLC, which reflect the vesting dates of the original awards. Initially Stephen Hester was
awarded 10,407,081 restricted shares on joining the Group.
(2) These awards vest as to 1/3 on each of the first, second and third anniversary of award, subject to their terms.
(3) The Remuneration Committee can amend the award made to Philip Hampton as it considers appropriate. However, shareholder approval will be required to amend certain provisions to his
advantage. These provisions relate to the basis for determining his entitlement to, and the terms of shares or other benefits and for the adjustment thereof (if any) if there is a capitalisation issue,
rights issue or open offer, sub-division or consolidation of shares or reduction of capital or any other variation of capital and the amendment power itself. The Remuneration Committee may, without
shareholder approval, make minor amendments to facilitate the administration of the award, to comply with or take account of any proposed or existing legislation or to obtain or maintain favourable
tax, exchange control or regulatory treatment for Philip Hampton or his employer. The benefit of the award is not pensionable. In assessing the performance to determine the vesting of this award,
the Remuneration Committee will consider a number of factors which demonstrate whether Philip Hampton has led the successful and sustainable rebuilding of the Group. The Committee will also
require to be satisfied that the vesting level is commensurate with the underlying financial performance of the Group.
261RBS Group 2010
Governance