Performance and reward
We manage our colleagues performance by making it clear to them how their efforts help our ultimate ambitions. In 2016, we refreshed our behavioural framework to apply to everyone across the whole bank – ‘Our Standards’.
Rewarding our colleagues
- The wages we pay our colleagues are above the benchmarks set by the Living Wage Foundation.
- Average salaries for UK colleagues have increased by 7.5% over the last three years. Average executive directors salaries have been static.
- In 2016, we removed sales incentives for our frontline colleagues. This helps them focus more on great customer service than on selling.
- For 2017, we’ve simplified how we pay our clerical colleagues. We’re consolidating bonuses, while making pay fairer and easier to understand.
- Bonuses have continued to shrink at RBS, aligned with the restructuring that has taken place and the actions taken by the Remuneration Committee, but a certain level is considered necessary as the business continues its transformation.
- The Group bonus pool has fallen from £373 million in 2015 to £343 million in 2016, a reduction of 8%. Over 93% of this pool will be paid to those below the executive level. Where colleagues do receive a bonus, the average amounts remain relatively modest with 50% of colleagues receiving £2,000 or less and a further 23% receiving less than £5,000. The amount of any immediate cash bonuses continues to be limited to £2,000.
More information on our remuneration policies can be found in the Annual Report and Accounts 2016.