RBS 2013 Annual Report Download - page 51
Download and view the complete annual report
Please find page 51 of the 2013 RBS annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1
-
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200
-
201
-
202
-
203
-
204
-
205
-
206
-
207
-
208
-
209
-
210
-
211
-
212
-
213
-
214
-
215
-
216
-
217
-
218
-
219
-
220
-
221
-
222
-
223
-
224
-
225
-
226
-
227
-
228
-
229
-
230
-
231
-
232
-
233
-
234
-
235
-
236
-
237
-
238
-
239
-
240
-
241
-
242
-
243
-
244
-
245
-
246
-
247
-
248
-
249
-
250
-
251
-
252
-
253
-
254
-
255
-
256
-
257
-
258
-
259
-
260
-
261
-
262
-
263
-
264
-
265
-
266
-
267
-
268
-
269
-
270
-
271
-
272
-
273
-
274
-
275
-
276
-
277
-
278
-
279
-
280
-
281
-
282
-
283
-
284
-
285
-
286
-
287
-
288
-
289
-
290
-
291
-
292
-
293
-
294
-
295
-
296
-
297
-
298
-
299
-
300
-
301
-
302
-
303
-
304
-
305
-
306
-
307
-
308
-
309
-
310
-
311
-
312
-
313
-
314
-
315
-
316
-
317
-
318
-
319
-
320
-
321
-
322
-
323
-
324
-
325
-
326
-
327
-
328
-
329
-
330
-
331
-
332
-
333
-
334
-
335
-
336
-
337
-
338
-
339
-
340
-
341
-
342
-
343
-
344
-
345
-
346
-
347
-
348
-
349
-
350
-
351
-
352
-
353
-
354
-
355
-
356
-
357
-
358
-
359
-
360
-
361
-
362
-
363
-
364
-
365
-
366
-
367
-
368
-
369
-
370
-
371
-
372
-
373
-
374
-
375
-
376
-
377
-
378
-
379
-
380
-
381
-
382
-
383
-
384
-
385
-
386
-
387
-
388
-
389
-
390
-
391
-
392
-
393
-
394
-
395
-
396
-
397
-
398
-
399
-
400
-
401
-
402
-
403
-
404
-
405
-
406
-
407
-
408
-
409
-
410
-
411
-
412
-
413
-
414
-
415
-
416
-
417
-
418
-
419
-
420
-
421
-
422
-
423
-
424
-
425
-
426
-
427
-
428
-
429
-
430
-
431
-
432
-
433
-
434
-
435
-
436
-
437
-
438
-
439
-
440
-
441
-
442
-
443
-
444
-
445
-
446
-
447
-
448
-
449
-
450
-
451
-
452
-
453
-
454
-
455
-
456
-
457
-
458
-
459
-
460
-
461
-
462
-
463
-
464
-
465
-
466
-
467
-
468
-
469
-
470
-
471
-
472
-
473
-
474
-
475
-
476
-
477
-
478
-
479
-
480
-
481
-
482
-
483
-
484
-
485
-
486
-
487
-
488
-
489
-
490
-
491
-
492
-
493
-
494
-
495
-
496
-
497
-
498
-
499
-
500
-
501
-
502
-
503
-
504
-
505
-
506
-
507
-
508
-
509
-
510
-
511
-
512
-
513
-
514
-
515
-
516
-
517
-
518
-
519
-
520
-
521
-
522
-
523
-
524
-
525
-
526
-
527
-
528
-
529
-
530
-
531
-
532
-
533
-
534
-
535
-
536
-
537
-
538
-
539
-
540
-
541
-
542
-
543
-
544
-
545
-
546
-
547
-
548
-
549
-
550
-
551
-
552
-
553
-
554
-
555
-
556
-
557
-
558
-
559
-
560
-
561
-
562
-
563
-
564
Corporate governance
49
Outcomes of the 2013 performance evaluation
The 2013 performance evaluation concluded that the Board was strong
and operated effectively and within its terms of reference throughout
2013. Key strengths identified included the following:
• the Board performed strongly during a challenging 2013, both as
individuals and collectively;
• the dynamic between Board members was good, the Chairman
successfully steered the Board through a very difficult and complex
agenda, and the directors dedicated a significant amount of time and
effort to their role; and
• the Board’s committees undertook their complex work well
throughout the year, providing strong support to the Board.
A summary of the key themes arising from the 2013 performance
evaluation is set out below, together with an overview of the proposed
actions:
Key themes included Proposed action
Board and Board
committee
composition
Keep Board and Board committee composition
under review during 2014, to ensure balance of
skills, experience, independence, knowledge and
diversity remains appropriate.
Strategic oversight Ensure that Board agendas for 2014 allocate
sufficient time for Board oversight of key areas of
strategic focus.
Risk reporting Consideration to be given to the Board Risk
Committee leading a review of risk reporting at
Board and Board committee level to further
enhance the format and content of risk reports.
External relationships Ensure regular contact with key external
stakeholders in order to maintain effective working
relationships at Board level.
Individual director and Chairman effectiveness reviews
The Chairman met with each director individually to discuss their own
performance and ongoing professional development and also shared
peer feedback that had been provided as part of the evaluation process.
Separately, the Senior Independent Director sought feedback on the
Chairman’s performance and canvassed views on the Chairman’s
performance from the non-executive directors collectively. The results of
the Chairman’s effectiveness review were then discussed by the
Chairman and the Senior Independent Director.
Relations with investors
The Chairman is responsible for ensuring effective communication with
shareholders. The company communicates with shareholders through the
Annual Report and Accounts and by providing information in advance of
the Annual General Meeting. Individual shareholders can raise matters
relating to their shareholdings and the business of the Group at any time
throughout the year by letter, telephone or email via rbs.com/ir
Shareholders are given the opportunity to ask questions at the Annual
General Meeting or can submit written questions in advance. Directors
including the chairs of the Board Committees are available to answer
questions at the Annual General Meeting. The Senior Independent
Director is also available.
Communication with the company's largest institutional shareholders is
undertaken as part of the Investor Relations programme:
• the Group Chief Executive and Group Finance Director meet
regularly with UKFI, the organisation set up to manage the
Government’s investments in financial institutions, to discuss the
strategy and financial performance of the business. The Group Chief
Executive and Group Finance Director also undertake an extensive
annual programme of meetings with the company’s largest
institutional shareholders.
• the Chairman independently meets with the Group’s largest
institutional shareholders annually to hear their feedback on
management, strategy, business performance and corporate
governance. Additionally, the Chairman, Senior Independent
Director and chairs of the Board committees met with the
governance representatives of a number of institutional
shareholders during the year.
• the Senior Independent Director is available if any shareholder has
concerns that they feel are not being addressed through the normal
channels.
• the Chair of the Group Performance and Remuneration Committee
consults extensively with major shareholders in respect of the
Group’s remuneration policy.
In 2013, the Group introduced a programme of UK based events aimed
at individual shareholders. These events provided an opportunity for
shareholders to meet with directors and senior management to learn
more about the business.
Throughout the year, the Chairman, Group Chief Executive, Group
Finance Director and Chair of the Group Performance and Remuneration
Committee communicate shareholder feedback to the Board. The
directors also receive independent analyst notes and reports reviewing
share price movements and performance against the sector. Detailed
market and shareholder feedback is provided to the Board after major
public announcements such as a results release. The arrangements in
place are to ensure that directors develop an understanding of the views
of major shareholders and that these are considered as part of the annual
Board evaluation.
The Group’s Investor Relations programme also includes
communications aimed specifically at its fixed income (debt) investors.
The Group Finance Director and/or Group Treasurer give regular
presentations to fixed income investors to discuss strategy and financial
performance. There is also a separate section on the Group’s website for
fixed income investors which includes information on credit ratings,
securitisation programmes and securities documentation. Further
information is available at rbs.com/ir.