RBS 2013 Annual Report Download - page 81
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Annual report on remuneration
79
Payments to past directors (audited)
No payments were made to former directors during the year ended 31
December 2013.
Payments for loss of office (audited)
Stephen Hester
Stephen Hester stepped down from the Board on 30 September 2013
and, in line with his contractual arrangements, he received the following
payments in lieu of 12 months’ notice.
Salary
Benefits
Pension
£1,200,000
£26,244
£420,000
Total £1,646,244
Stephen Hester also received payment in lieu of five days accrued
holiday, a nominal amount (£100) in respect of an undertaking to provide
ongoing assistance to RBS with any investigations or claims and a
commitment to pay directly to his lawyers legal fees of £23,000 + VAT
incurred in connection with his departure. He did not receive any annual
bonus award for 2013.
The Committee exercised discretion under the LTIP rules to allow
unvested awards to continue subject to time pro-rating and performance
assessment. The Committee believed this was an appropriate use of
discretion in the circumstances recognising the significant contribution
made by Stephen Hester over the period and his willingness to assist in
an orderly handover period. The performance conditions will be assessed
by the Committee at the end of the relevant performance periods in line
with the LTIP rules. Stephen Hester and the Committee agreed that the
maximum number of shares available for vesting under outstanding LTIP
awards would be capped at 65% after the application of time pro-rating.
The maximum number of shares available for vesting is therefore as
follows:
Unvested LTIP shares at departure
Shares remaining after time pro-rating
3,461,886
2,064,638
Max number of time pro-rated shares capped at 65% (1) 1,342,014
Note:
(1) The actual number of shares will depend on performance assessment and may be less.
Bruce Van Saun
Bruce Van Saun stepped down from the Board on 30 September 2013
and became CEO and Chairman of RBS Citizens Financial Group and
Head of RBS Americas. He continues to be employed within RBS and
therefore no termination payment was made in connection with this
change of role.
Directors’ interests in shares and shareholding requirements (audited)
The target shareholding level for the Group Chief Executive is 250% of salary and 125% of salary for other executive directors and members of the
Executive Committee, in each case excluding any unvested share awards in the calculation. A period of five years is allowed in which to build up
shareholdings to meet the required levels.
As at 31 December 2013 (or date of cessation if earlier)
Shares beneficially owned
Value(1)
(£)
% of shareholding
requirement met
Unvested LTIP awards (subjec
t
to performance conditions)
Unvested Deferral Plan
awards
Stephen Hester 761,218 2,740,385 91% 2,064,638 —
Bruce Van Saun 148,421 501,663 49% 2,163,680 466,947
Ross McEwan 516,336 1,745,216 70% 1,259,081 56,395
Nathan Bostock 375,969 1,270,775 133% 2,151,234 289,536
Philip Hampton 27,630 n/a
Sandy Crombie 20,000 n/a
Alison Davis 20,000 n/a
Tony Di lorio (2) 30,000 n/a
Robert Gillespie nil n/a
Penny Hughes 562 n/a
Joe MacHale 28,431 n/a
Brendan Nelson 12,001 n/a
Baroness Noakes 21,000 n/a
Art Ryan 5,000 n/a
Philip Scott 50,000 n/a
Notes:
(1) Value is based on the share price at 31 December 2013, which was £3.38 other than for Stephen Hester where the value is based on the share price of £3.60 at 30 September 2013, the date he
stepped down from the Board. During the year ended 31 December 2013, the share price ranged from £2.66 to £3.85.
(2) Tony Di Iorio’s interests in the company’s shares are held in the form of American Depository Receipts (ADRs). Each ADR represents 2 ordinary shares of £1.00 each in the company. Tony Di Iorio
has interests in 15,000 ADRs representing 30,000 ordinary shares
In line with the requirements of the PRA Remuneration Code and the RBS Staff Dealing Rules, executive directors must not engage in any personal
hedging strategies to lessen the impact of a reduction in value of unvested share awards, for example if the RBS share price goes down. No other
current director had an interest in the company's ordinary shares during the year or held a non-beneficial interest in the shares of the company at 31
December 2013, at 1 January 2013 or date of appointment if later. The interests shown above include connected persons of the directors. As at 26
February 2014, there were no changes to the directors' interests in shares shown in the table above.