RBS 2013 Annual Report Download - page 79
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Annual report on remuneration
77
Total Pension Entitlements – Bruce Van Saun (audited)
Mr Van Saun's UURBS operates as a cash balance plan. The rate of return on the accrued fund is determined annually by the Committee to reflect a
long-term low risk investment return on an unsecured basis. For 2013 this rate was 4.7%. His accrued entitlement at the year end is shown below.
There is no provision for any additional benefit on early retirement.
2013
£000s
2012
£000s
Balance at 1 January 2013 682 246
Aggregate contributions that would have been made if funded 306 408
Investment return 42 28
Total value of fund at 31 December 2013 1,030 682
Executive directors’ annual bonus for 2013 (audited)
The normal maximum that could be paid to executive directors under the annual bonus arrangements for 2013 is 200% of salary. The table below sets
out the outcome for the 2013 performance year.
Stephen Hester
As part of the exit arrangements detailed on page 79, no annual bonus award is payable to Stephen Hester for 2013.
Bruce Van Saun
As announced on 27 January 2014, no bonus award will be payable to executive directors or members of the 2013 Executive Committee in respect of
2013 performance.
Ross McEwan
Ross McEwan indicated he did not wish to be considered for an annual bonus in respect of his Group Chief Executive role in 2013 or 2014. As
announced on 27 January 2014, no bonus award will be payable in respect of the UK Retail role that Mr McEwan undertook during 2013.
Nathan Bostock
Following announcement of his departure, no annual bonus is payable to Nathan Bostock.
Executive directors’ LTIP awards granted in 2010 – final assessment of performance outcome (audited)
Performance measure Performance requirements Vesting outcome
Economic profit
(50%)
Maximum vesting triggered by early delivery of Core business profitability, well ahead of
the range implied by the published Strategic Plan targets and also in excess of the cost
of capital.
Relative TSR
(25%)
20% vesting if TSR is at the median rising to 100% vesting if TSR is at the upper quartile
of the companies in the comparator group.
Absolute TSR
(25%)
20% vesting if RBS share price reaches £5.75.
100% vesting if RBS share price reaches £7.75.
The LTIP awarded in 2010 was due
to vest in May 2013. The number of
shares under award is set out in the
table on page 80.
Awards did not vest in May 2013 as
a result of the threshold performance
requirements not being met and the
awards lapsed.
Share plan interests awarded under the LTIP during 2013 (audited)
Grant date
Face value o
f
award (£000)
Number o
f
shares
awarded
% that would vest at
threshold and maximum
Performance
requirements
Stephen Hester 8 March 2013 3,600 1,164,295
Bruce Van Saun 8 March 2013 2,250 727,685
Ross McEwan 8 March 2013 2,153 696,152
Nathan Bostock 8 March 2013 2,500 808,539
Vesting between
0% - 100% with
20% - 25%
vesting at
threshold
Conditional share awards subject to stretching performance
conditions over a three year period ending on the third anniversary o
f
the grant date, as detailed below.
The LTIP award granted to Ross McEwan will be assessed based on
12 months against the targets applicable as CEO UK Retail and 24
months against the targets applicable as Group Chief Executive.
Notes:
The number of shares awarded is based on a multiple of salary and the award price is calculated based on the average share price over five business days prior to the grant date of £3.092
In addition to performance conditions, all awards are subject to clawback provisions prior to vesting and a six month retention period post vesting in line with the PRA Remuneration Code.
The treatment of outstanding LTIP awards held by Stephen Hester is detailed under the Payments for loss of office section.
The LTIP award held by Nathan Bostock has been lapsed following notification that he will be leaving the Group.