RBS 2012 Annual Report Download - page 326

Key inputs to the Group Performance and Remuneration Committee to assist its decision-making
The 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 2012. The diagram below illustrates this:
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Directors’ remuneration report Remuneration Governance continued
Shareholders
Extensive shareholder
consultation and reporting
to the Committee so that
members are aware of
shareholder views.
Regulators/external
environment
Regular updates on key
developments including the
FSA Code, Government
consultations, guidelines
from shareholders and
investor bodies.
Asset Protection Scheme
Performance and Reward
Committee (APSPRC)
Evaluates collective overall
performance against agreed
APS performance objectives
and reports to the Committee.
Following the exit from the APS
in October 2012, the APSPRC
will be disbanded once the 2012
performance review process
is complete.
Accountability Reviews
Divisional and Group
Accountability Review Panels
review risk management, control
and policy breach issues and
make recommendations on
actions which can include
disciplinary investigations,
current year annual incentive
reduction and clawback.
The Committee receives input
from the Board Risk
Committee and Group
Audit Committee as well
as the Group CEO,
CRO and HR Director
in this process.
Advisers
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.
Group Finance
Provides independent review
of the financial performance of the
Divisions and Group and reports
on the Group's capital position.
Group Human Resources
Supports the Group Performance
and 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.
Board Risk Committee
Reviews annual performance
objectives and also long-term
incentive plans performance
objectives and provides advice
on divisional/individual risk
performance.
Group
Performance
and
Remuneration
Committee
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.