RBS 2011 Annual Report Download - page 278

276 RBS Group 2011
Key inputs to the Group Remuneration Committee to assist its decision-making
The Group Remuneration Committee receives regular updates on regulatory developments and general remuneration issues, as well as market and
benchmarking data to support its decisions. It also received information from a number of external and internal sources during 2011. The diagram
below illustrates this:
Directors’ remuneration report continued
Remuneration
Committee
Regulators/external environment
Regular updates on key
developments including
the FSA Code, Government
consultations, guidelines from
shareholders and investor bodies.
Advisors
The Committee has appointed independent
external advisers who attend private sessions
of the Committee without executives present.
Deep dives
The Committee regularly receives
presentations from the divisions to
obtain an insight into wider people issues
beyond pay.
Asset Protection Scheme
Performance and Reward
Committee (APSPRC)
Evaluates collective overall
performance against agreed APS
performance objectives and reports
to the Committee. The APSPRC also
makes recommendations on the
proportion of incentive awards for
In-Scope employees which are
evaluated against APS objectives.
Board Risk Committee
Reviews annual performance objectives and
also long-term incentive plans performance
objectives and provides advice on
divisional/individual risk performance.
Shareholders
Extensive shareholder consultation and reporting to
the Committee so that members are aware of
shareholder views. (More details on the consultation
process is given on the next page).
Group Performance and
Reward Committee
Reviews annual incentive plans operated
Group-wide, ensuring compliance with the
Group’s design principles for short term
incentives, and reports annually to the
Committee.
Group HR Reward
Supports the Group Remuneration Committee as they
develop reward philosophy, strategy and policies across
the RBS Group. Provides input on market trends and
compensation structures for the executives and the
broader population in the Group.
Group Risk Management
Reviews incentive plan design
and target setting and provides
risk review of divisional/individual
performance.
Group Finance
Provides independent review
of the financial performance of
the Divisions and Group and
reports on the Group's capital
position.