Royal Bank of Canada today Tuesday that, subject to normal insider trading restrictions and filing requirements, members of the Group Executive, which includes the president and chief executive officer, may sell approximately 30,000 common shares of Royal Bank of Canada later this year or early next year in order to fulfill certain tax obligations resulting from the vesting of a performance deferred share grant earlier in 2005.
According to a news release from the Canadian bank, the performance deferred shares were granted in 2002 under RBC’s Performance Deferred Share Program, as described in the Management Proxy Circular dated January 26, 2005. The performance deferred shares vest after three years, and become taxable as income in the vesting year regardless of whether they are held or sold. Similar awards were granted in subsequent years. However, beginning with the December 2004 grant, the program was restructured to enable taxes to bededucted at the source.
Any trade by members of the Group Executive will only occur during open window periods and in compliance with RBC policies and regulatory and governance requirements. Members of the Group Executive currently maintain and will continue to maintain shareholdings in excess of the ownership requirements as described in the Management Proxy Circular.