RBS 2010 Annual Report Download - page 385

41 Directors' and key management remuneration
Group
Directors' remuneration 2010
£000
2009
£000
Non-executive directors - emoluments 1,093 823
Chairmen and executive directors
- emoluments 5,243 4,971
- contributions and allowances in respect of defined contribution pension schemes 321 —
6,657 5,794
-amounts receivable under long-term incentive plans 1,097 1,103
7,754 6,897
No directors are accruing benefits under defined benefit schemes (2009 - one), one director is accruing benefits under defined contribution schemes
(2009 - nil).
The executive directors may participate in the company's executive share option and sharesave schemes and details of their interests in the company's
shares arising from their participation are given in the Directors' remuneration report. Details of the remuneration received by each director during the
year and each director's pension arrangements are also given in the Directors' remuneration report.
Compensation of key management
The aggregate remuneration of directors and other members of key management during the year was as follows:
Group
2010
£000
2009
£000
Short-term benefits 35,654 29,292
Post-employment benefits (503) 9,781
Share-based payments 21,551 8,953
56,702 48,026
42 Transactions with directors and key management
(a) At 31 December 2010, amounts outstanding in relation to transactions,
arrangements and agreements entered into by authorised institutions in
the Group, as defined in UK legislation, were £3,603,075 in respect of
loans to seven persons who were directors of the company at any time
during the financial period.
(b) For the purposes of IAS 24 ‘Related Party Disclosures’, key
management comprise directors of the company and members of the
Group Management Committee. The captions in the Group's primary
financial statements include the following amounts attributable, in
aggregate, to key management:
2010
£000
2009
£000
Loans and advances to customers 10,970 11,196
Customer accounts 10,641 11,713
Key management have banking relationships with Group entities which are entered into in the normal course of business and on substantially the same
terms, including interest rates and security, as for comparable transactions with other persons of a similar standing or, where applicable, with other
employees. These transactions did not involve more than the normal risk of repayment or present other unfavourable features.
Key management had no reportable transactions or balances with the company.
43 Related parties
UK Government
On 1 December 2008, the UK Government through HM Treasury became
the ultimate controlling party of The Royal Bank of Scotland Group plc.
The UK Government's shareholding is managed by UK Financial
Investments Limited, a company wholly owned by the UK Government.
As a result, the UK Government and UK Government controlled bodies
became related parties of the Group.
The Group enters into transactions with many of these bodies on an
arms' length basis. The principal transactions during 2010 and 2009
were: the Asset Protection Scheme, Bank of England facilities and the
issue of debt guaranteed by the UK Government described below.
In addition, the redemption of non-cumulative sterling preference shares
and the placing and open offer in April 2009 was underwritten by HM
Treasury and, in December 2009, B shares were issued to HM Treasury
and a contingent capital agreement concluded with HM Treasury (see
Note 29). Other transactions include the payment of: taxes including UK
corporation tax and value added tax; national insurance contributions;
local authority rates; and regulatory fees and levies; together with
banking transactions such as loans and deposits undertaken in the
normal course of banker-customer relationships. The volume and
diversity of these transactions are such that disclosure of their amounts is
impractical.
383RBS Group 2010
Financial statements