RBS 2012 Annual Report Download - page 344

FSA Remuneration Disclosure
These disclosures are in accordance with the FSA’s Handbook for banks,
building societies and investment firms (BIPRU) 11.5.18 (6) and (7).
1. Aggregate remuneration expenditure
During the year, there were 368 Code Staff. Aggregate remuneration
expenditure was as follows:
Markets
£m
Rest of RBS Group
£m
97.0 161.0
2. Amounts and form of fixed and variable remuneration
Fixed Remuneration
Consisted of salaries, pensions and benefits paid during the year.
Senior management
£m
Others
£m
60.3 51.9
Variable remuneration for 2012 performance
Consisted of deferred awards payable over a three year period. Cash
awards were limited to a maximum of £2,000 per employee.
Form of remuneration
Senior
management
£m
Others
£m
Variable remuneration (cash) 0.3 0.3
Variable remuneration (shares subject
to retention) 11.3 17.4
Deferred remuneration (bonds) 23.6 38.4
Deferred remuneration (shares) 11.3 19.8
0% of total variable remuneration was subject to a guaranteed commitment made on recruitment
to secure the employment of key individuals.
Long term incentives
Long term incentive awards made each year are paid three years after
the date of award based on the extent to which performance conditions
are met, and can result in zero payment if performance is not at the
threshold level.
Senior management
£m
Others
£m
17.5 6.1
3. Outstanding deferred remuneration through 2012
The table below includes deferred remuneration awarded or paid out in
2012. Deferred remuneration reduced during the year relates to long term
incentives lapsing when performance conditions are not met, long term
incentives and deferred awards forfeited on leaving, options lapsing and
clawback of prior year deferred awards and long term incentives.
Category of deferred remuneration
Senior
management
£m
Others
£m
Unvested from prior year 121.0 213.6
Awarded during the financial year 53.6 77.9
Paid out 41.0 111.8
Reduced from prior years 19.1 45.6
Unvested at year end 114.5 134.1
4. Sign-on and severance payments
No sign-on or severance payments were made to Code Staff during the
year.
Notes on the presentation of remuneration
In the relevant tables above, assumptions have been made for the
notional value of long term incentives (verified by external advisors) and,
forfeitures through resignation for deferred awards.
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Other remuneration disclosures continued