RBS 2012 Annual Report Download - page 334

Implementation Report for 2012
The table below has been prepared in line with the anticipated reporting requirements proposed by the Department for Business, Innovation and Skills.
The purpose is to reflect the fixed elements of pay that have been earned during the year and, as far as is possible, to value performance related pay
where performance has been assessed.
The following tables and explanatory notes on this page detail the remuneration of each director for the year ended 31 December 2012 and have been
audited by the company's auditors, Deloitte LLP.
Total remuneration for executive directors
Performance related pay Total remuneration
Salary
£000
Benefits
£000
Pension
£000
Subtotal
£000
Annual
incentive (1)
£000
LTIP (2)
£000
Subtotal
£000
2012
£000
2011
£000
Stephen Hester 1,200 26 420 1,646 —
—
— 1,646 1,646
Bruce Van Saun (3) 750 134 408 1,292 980
—
980 2,272 2,119
Notes
(1) Stephen Hester waived any annual incentive entitlement for the 2012 performance year. Bruce Van Saun has been awarded an annual incentive of £980,000 which will be granted as an award
entirely in shares in March 2013 and will vest in March 2014 and 2015. For subsequent reporting years, the shares awarded to Bruce Van Saun will be detailed in the Deferred Awards table (see
page 340). Further details of the performance assessment of the executive directors in 2012 is outlined on pages 333 and 334.
(2) The nil value under the LTIP column reflects awards granted under the Medium-term Performance Plan and Executive Share Option Plan in 2009. The awards did not vest in 2012 as a result of the
performance conditions not being met.
(3) Bruce Van Saun resigned as a non-executive director of ConvergEx Holdings LLC during 2012 and received a pro rated fee of US$62,500 for 2012. Mr Van Saun was appointed as a non-executive
director of Lloyd’s of London Franchise Board during 2012 for which he received a pro rated fee of £19,450. He is also a non-executive director of Direct Line Insurance Group plc , the fees for which
are paid direct to the Group and is a non-executive director of Worldpay (Ship Midco Limited) for which no fees are payable. Mr Van Saun makes contributions towards his pension through a salary
sacrifice arrangement to an Unfunded Unapproved Retirement Benefit Scheme, which operates on a defined contribution basis. The total contribution to the defined contribution arrangements
amounted to £408,000 in 2012 (£403,000 in 2011). The rate of return on his accrued contributions is determined annually by the Committee to reflect a long-term low risk investment return on an
unsecured basis. For 2012 this rate was 6.2% reflecting December 2011 CPI plus 2%.
Other directors' remuneration
Salary/
fees
£000
Benefits
£000
2012
Total
£000
2011
Total
£000
Chairman
Philip Hampton 750 — 750 750
Board
fees
Board
Committee
fees
2012
Total
2011
Total
£000 £000 £000 £000
Non-executive directors
Sandy Crombie 150 — 150 150
Alison Davis 73 41 114 43
Tony Di Iorio 73 55 128 43
Penny Hughes 150 — 150 150
Joe MacHale (1) 73 60 133 133
Brendan Nelson 150 — 150 150
Baroness Noakes 73 51 124 43
Art Ryan (2) 73 20 93 95
Philip Scott 150 — 150 150
Former non-executive director
John McFarlane (3) 18 8 26 103
Notes:
(1) Board Committee fee includes membership of the Asset Protection Scheme Senior Oversight Committee.
(2) Art Ryan is a non-executive director of RBS Citizens Financial Group, Inc. for which he received fees of US$131,000 during 2012.
(3) Retired from the Board with effect from 31 March 2012.
There have been no payments made for loss of office.
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Directors’ remuneration report Implementation Report