RBS 2011 Annual Report Download - page 294

292 RBS Group 2011
Long-Term Incentive Plan (LTIP)
No variation was made to any of the terms of the plan during the year. Awards to executive directors under the LTIP in 2011 are subject to performance
conditions detailed on page 284. Performance conditions for awards made in 2010 are detailed on page 285.
Awards held
at 1 January
2011
Awards
granted
in 2011
Market
price on
award
£
Awards
vested in
2011
Market price
on vesting
£
Awards held
at 31 December
2011
End of period
for qualifying
conditions to
be fulfilled
Stephen Hester 8,578,432 (1) —0.49 8,578,432 14.05.13
—10,114,178 0.44 10,114,178 07.03.14
8,578,432 10,114,178 18,692,610
Bruce Van Saun 5,182,803 (2) —0.49 5,182,803 14.05.13
— 6,321,362 0.44 6,321,362 07.03.14
5,182,803 6,321,362 11,504,165
Notes:
(1) Stephen Hester has agreed to a voluntary holding period of two further years beyond the vesting date for the net post-tax number of vested shares in respect of at least one third of the award.
(2) Bruce Van Saun has agreed to a voluntary holding period of two further years beyond the vesting date for the net post-tax number of vested shares for the amount over 300% of his salary.
Deferred awards
Below are details of deferred awards granted to executive directors. Awards are structured as conditional rights to receive shares and are subject to
clawback. No variation has been made to any of the terms of the plan during the year.
Awards held
at 1 January
2011
Awards
granted
in 2011
Market
price on
award
£
Awards
vested in
2011
Market price
on vesting
£
Awards held
at 31 Decembe
r
2011
End of period
for qualifying
conditions to
be fulfilled
Stephen Hester (1) — 4,585,094(2) 0.44 4,585,094 07.03.12 - 07.03.13
Bruce Van Saun 957,071
(3) 0.38 957,071 18.06.12
— 3,030,882(2) 0.44 3,030,882 07.03.12 - 07.03.13
957,071 3,030,882 3,987,953
Notes:
(1) In February 2010, Stephen Hester agreed to waive his deferred award in respect of the 2009 performance year.
(2) The awards granted on 7 March 2011 relate to an allocation of shares under the Share Bank arrangements for annual incentives in respect of the 2010 performance year. The allocation was made
as a conditional right to acquire ordinary shares under The RBS 2010 Deferral Plan. The Awards are due to vest in two equal tranches on 7 March 2012 and 7 March 2013 and any vested shares
are subject to a further six month retention post-vesting. Mr Hester has voluntarily agreed to a total retention period of 12 months post-vesting. Clawback provisions will apply prior to vesting of the
shares.
(3) The Award was granted in March 2010 and relates to an allocation of shares in respect of annual incentives for the 2009 performance year.
Share options
The ESOP was approved by shareholders in April 2007. No further awards will be made under the ESOP as it has been replaced by the LTIP.
Performance conditions applying to the outstanding awards are shown on page 285.
Options held at
31 December 2011
Options held
at 1 January
2011
Number of options
exercised in 2011
Market
price at
date o
f
exercise
£
Option
price
£Number Exercise period
Stephen Hester 9,550,000 0.37 9,550,000 22.06.12 - 21.06.19
Bruce Van Saun 905,306 0.57 905,306 08.09.12 - 07.09.19
No options had their terms and conditions varied during the year ended 31 December 2011. No payment is required on the award of an option. The plan
was amended in 2009 to introduce a clawback provision for grants made in 2009. In respect of the grant of options in 2009, the performance conditions
for executive directors are based on a combination of relative and absolute TSR measures.
The market price of the company's ordinary shares on 30 December 2011 was 20.18p and the range during the year ended 31 December 2011 was
17.34p to 49.0p.
Directors’ remuneration report continued