RBS 2012 Annual Report Download - page 336

Bruce Van Saun
Bruce Van Saun’s performance is also measured against a number of strategic and business objectives. He continues to perform as a world class
Group Finance Director, providing both a strong strategic contribution for the Group together with the broader finance contribution to the Group’s priority
to strengthen the balance sheet and reduce risk. Group Treasury has facilitated a significant reduction in the Group’s reliance on short-term funding.
Bruce Van Saun has displayed strong leadership on a number of key strategic projects, notably the Group’s successful divestment of Direct Line Group
and exit from the Asset Protection Scheme at the earliest opportunity. He showed early commitment to taking forward the Group’s cultural change within
Finance. The Committee recommended, and the Board (excluding executive directors) approved, that the Group Finance Director receive an award of
65% of the maximum allocation for the 2012 performance year, which equates to £980,000. The award will be made entirely in shares, vesting in two
equal tranches on the first and second anniversary of the date of grant and subject to clawback provisions prior to vesting.
Core objectives Targets for 2012 Progress in 2012
Strategic progress Monitor and improve the Group and divisional
strategic plans. Drive effective design and
implementation of revised plan. Work with
CEO on Group Strategy/M&A/APS.
Revised strategy agreed by the Board, with rigour of process acknowledged
by Board and regulators. Continued challenge and good progress made on
2012 costs, capital resource usage, and targets for 2013 budgets. Strong
leadership displayed on key strategic projects; APS exit at the earliest
opportunity and with minimum fee payment.
Business delivery and
financial performance
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. Ensure a robust
capital and funding planning framework. Drive
efficiency. Successful completion of EU
mandated disposals.
Continued achievement of ‘best in class’ for external reporting within the UK
market, with risk disclosures seen as setting the standard; significant
improvements with internal reporting processes. Led the ‘safety and
soundness’ agenda across the Group, beating targets. Continued strong
contribution to de-risking strategy with significant reduction in short term
funding reliance; all liquidity requirements met, in compliance with FSA
requirements. Actively driving out costs through the creation and embedding
of a sizeable cost management programme, as well as making significant
progress in the transformation of the Finance function through changes to
operating model, ways of working and systems solutions.
Direct Line Insurance Group plc divestment well received by investors and
the market, and is widely viewed as a “textbook” execution due to the uptake
and price behaviour; branch disposal did not proceed due to unexpected
withdrawal of Santander. The DLG IPO is a particular credit to the Group
Finance Director’s exceptional abilities and leadership.
Risk and control Implementation of effective regulatory
changes impacting capital, funding, liquidity.
Improve quality of risk and financial data.
Continue development of Internal Audit
function. Deliver against agreed APS
objectives.
More robust capital planning, recognising regulatory changes. Strong
stewardship over the financial risk and control environment and good
partnership working with risk function. Significant improvements in risk-
weighted assets reporting and control, and in data quality through leadership
of a number of key initiatives across the group. Effective response to the
technology incident, giving strong leadership to the function. Internal Audit
strategy and plan well received by Group Audit Committee. All APS
objectives met.
Stakeholder
management
Continue to develop effective external
relationships, including investors, rating
agencies and regulators.
Excellent contribution to external relations, articulating results with clarity and
credibility. Successful engagement with equity and debt investors; good
engagement with the new UK regulators, US regulators and ratings agencies.
Significant success in achieving narrower funding and certificates of deposits
spreads, and diversification of the debt investor base. Under the Group
Finance Director’s leadership, RBS has effectively withstood a ratings
downgrade of ‘one notch’, whilst other peers were downgraded by ‘two
notches’. Effective working with the Group Audit Committee.
People management Lead upgraded team and build positive
culture. Contribute to overall Group
management.
Key strategic hires for Group Internal Audit and Group Strategy positions
working well; upgrades to their teams underway. Following LIBOR and other
industry-wide challenges on ethical conduct behaviours, the Group’s purpose,
vision and values were given early consideration by the Finance function to
bring to life. Improved engagement within the Finance function as measured
through the ‘Your Feedback 2012’ survey. Robust programmes for internal
talent in place across all levels, as well as strong focus on initiatives in
recognition, diversity and training & development.
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Directors’ remuneration report Implementation Report continued