Royal Bank of Scotland : RBS backs proposals to enhance corporate governance through stakeholder engagement

RBS supports the introduction of formal stakeholder engagement panels, which will allow directors and senior executives to hear directly from a range of key stakeholders, including employees, customers, suppliers and others with an interest in how the company is performing and operating. RBS envisages the members of its Sustainable Banking Committee taking the lead in stakeholder engagement as 'stakeholder supporters'.

The bank continues to contribute to industry feedback on the Green Paper, which will address each consultation question posed and explore the more technical considerations connected to the proposals.

Having taken legal advice, the RBS Board has taken the decision not to take forward a proposed AGM Resolution submitted by ShareSoc and UK Shareholders' Association (UKSA) that called for the creation of a narrower 'Shareholder Committee'. The proposed resolution was considered to be inconsistent with the law and the Company's constitution.

RBS Chairman, Howard Davies commented:

'Acknowledging past mistakes and recognising the part that RBS must play in reform, we continue to develop our culture and priorities. Having looked closely at how we can improve and build upon existing arrangements at board level, we believe that RBS would benefit from strengthening the voice of our employees, customers and wider stakeholders.

'Stakeholder representation is hugely important to us; we want to be trusted, respected and valued by all of our stakeholders. We thank ShareSoc and UKSA for their input. We will continue to engage with all relevant bodies and are committed to embracing and supporting the Government's call for reform, which we believe will enhance engagement across UK industry as a whole.'