RBS 2012 Annual Report Download - page 330

Annual incentive awards - performance criteria for 2013
The executive directors’ annual performance objectives, as set out below, are approved by the Committee. The risk objectives are reviewed by the
Board Risk Committee.
Core objectives Stephen Hester Bruce Van Saun
Strategic progress Revise original Strategic Plan to respond to significant
changes in the macro environment. Deliver execution of
revised strategy including focus on brand values and fair
outcomes for customers. Develop strategy for
implementation of ring-fencing. Progress plans towards
Government exit.
Monitor and improve the Group and divisional strategic
plans. Drive effective design and implementation of revised
plan.
Business delivery and
financial performance
Lead delivery of overall performance, including measures
relating to ROE, cost management, Core Tier 1 capital
ratio, funding and risk profile, lending, and EU mandated
disposals.
Ensure statutory, regulatory and management reporting is
compliant with all external and internal standards. Continue
to improve ‘best in class’ external reporting. Provide strong
Group Finance Director role to the business through
strategic planning, budgeting, forecasting and reporting.
Monitor and control Group budget. Ensure a robust capital
and funding planning framework. Drive efficiency.
Successful further Direct Line Insurance Group plc
‘selldown’ and re-plan of EU mandated branch disposals.
Risk and control Delivery of measures relating to wholesale funding
reliance, liquidity reserves and leverage ratio. Further
progress on risk appetite, risk frameworks and conduct
risk, in support of the continued culture change across the
Group.
Progress on key risk requirements. Implementation of
effective regulatory changes impacting capital, funding, and
liquidity. Improve quality of risk and financial data. Continue
development of Group Internal Audit function.
Stakeholder management Achievement of customer performance measures.
Build/maintain strong and effective relationships with
external stakeholders, including senior leaders in the new
UK regulatory framework.
Continue to develop effective external relationships,
including investors, rating agencies and regulators.
People management Ensure each division/function has a people plan. Embed
the Group’s purpose, vision and values through high
quality leadership teams. Build talent management and
performance management. Maintain leadership and
employee engagement as measured by the employee
survey.
Lead upgraded team and build positive culture and sense
of purpose. Contribute to overall Group management.
Partner colleagues in leading the Group’s purpose, vision
and values to support culture change.
The Committee will determine the actual value of any award by reference to the extent to which executive directors have met the performance targets.
Awards will be paid entirely in shares and will vest in two equal tranches on the first and second anniversaries of the date of grant. Clawback provisions
will apply prior to the vesting of the shares. An additional six month holding period will apply post vesting.
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Directors’ remuneration report Policy Report continued