RBS 2011 Annual Report Download - page 296

294 RBS Group 2011
HM Treasury published a consultation on 6 December 2011 with draft
regulations on remuneration disclosure. The proposals set out that all
large banks operating in the UK should publish the pay details of their
eight highest paid senior executive officers who are not main board
directors.
For consistency, figures shown below are in GBP. Where applicable,
currency conversion was based on the 2011 average exchange rate for
fixed remuneration and the 31 December 2011 spot rate for bonus
figures, in line with the approach taken in this Report. No sign-on or
severance awards have been made during 2011 to any of the individuals
detailed below.
Remuneration of executive directors and eight highest paid senior executives (attendees at Group Executive Committee)
Stephen
Hester
Bruce Van
Saun Executive 1 Executive 2 Executive 3 Executive 4 Executive 5 Executive 6 Executive 7 Executive 8
£000 £000 £000 £000 £000 £000 £000 £000 £000 £000
Fixed remuneration 1,200 744 1,730 751 769 688 575 638 769 375
Upfront variable
remuneration (cash) — — 222222—2
Upfront variable remuneration
(shares subject to retention) — — 390 500 350 166 180 170 — 98
Deferred variable
remuneration (bond) — — 973 1,248 873 413 448 423 — 161
Deferred variable remuneration
(shares subject to retention) —840 585 750 525 249 270 255 — 65
Long Term Incentive Awards
vested during 2011 — — —26——15——7
Total variable remuneration —840 1,950 2,526 1,750 830 915 850 — 333
Total remuneration 1,200 1,584 3,680 3,277 2,519 1,518 1,490 1,488 769 708
Long Term Incentive Awards
(subject to future performance) (1) 1,620 1,013 991 — 1,125 675 675 675 — 270
No sign-on or severance awards have been made during 2011 to any of the above individuals.
Note:
(1) The Long Term Incentive Award (subject to future performance) is made following the end of the relevant financial year. The amounts shown reflects an approximate notional value, verified by
external advisors. The actual value of the award which will vest in 2015 will be dependent on actual performance and share price.
2009 GBM LTIP vesting
In 2009 on adoption of the RBS Group recovery plan, John Hourican, the newly appointed Head of GBM, was awarded a conditional LTIP with
performance conditions covering the 2009 - 2011 period. The performance period has now completed and 15,904,256 shares (and 5,566,490 share
options with zero current intrinsic value), are due to vest on 3 April 2012. The table below summarises the GBM performance tests. The Group
Remuneration Committee agreed a 73% vesting level based on performance for the period.
Vesting potential
Weighting per performance year
Performance categories
Overall
weighting
%
2009
%
2010
%
2011
%
Final
vesting
%
1. Remake of GBM post 2008 and no material adverse event 20 6 6 8 16
2. Achievement of 15% ROE and outlook 30 9 9 12 18
3. Sustaining key customer/market positions 20 6 6 8 14
4. Management team renewal 10 3 3 4 10
5. Efficiency (Balance Sheet, Risk, Cost:income) 10 3 3 4 6
6. Funding & Capital Structure 5 1.5 1.5 2 5
7. Support of Non-Core 5 1.5 1.5 2 4
8. Total 100 30 30 40 73
Other remuneration disclosure