US-based director - Lawrence Fish
The remuneration policy for Mr Fish is as follows:
Base salary is set having regard to the levels of base salary in other US banks and the appropriate balance of fixed and variable remuneration for US based executives of UK listed companies operating within the corporate governance frameworks of the UK.
Benefits Mr Fish accrues pension benefits under a number of arrangements in the US. In addition he is entitled to receive other benefits on a similar basis to other Citizens employees.
Short-term performance rewards take the form of an annual incentive plan which rewards the achievement of Group, business unit and individual financial and non-financial targets. The normal maximum annual bonus potential is two times salary, although additional amounts to a maximum of a further two times salary may be awarded, at the discretion of the Board, for exceptional performance as measured by the achievement of significant objectives.
Long-term incentives consist of the following components:
- The last grant made under the Citizens Phantom 2000 Plan vested on 1 January 2006. The value of units at the time of vesting was based on the cumulative economic profit generated by Citizens, the trend in economic profit and on the external market trends in the US banking sector, using price/earnings ratios of comparator US banks.
- A grant under the Group's Medium-term Performance Plan within the levels, and on the same terms, available to UK-based executives.
- A grant under the executive share option scheme within the levels, and on the same terms, available to UK-based executives. In 2007, Mr Fish will be eligible for a grant under the new executive share option plan if approved by shareholders at the company's Annual General Meeting.
- A grant under the new Citizens Long Term Incentive Plan approved by shareholders at the company's Annual General Meeting in 2005. Performance is measured on a combination of Growth in Profit before Tax and Relative Return on Equity based on a comparison of Citizens with comparator US banks. The targets for this plan are set on an annual basis over the three year term of the grant. The target value of the award made under the plan in 2005 was 33% of salary and in 2006 was 75% of salary. Each award may deliver up to a maximum of twice the target value.
© 2007