Barclays 2011 Annual Report Download - page 259

Employee benefits
Employee benefits outlines the costs and commitments associated with employing our staff.
37 Staff costs
Accounting for staff costs
The Group applies IAS 19 Employee benefits in its accounting for most of the components of staff costs.
Short-term employee benefits – salaries, accrued performance costs, social security and the Bonus Payroll Tax are recognised over the period in
which the employees provide the services to which the payments relate.
Performance costs – recognised to the extent that the Group has a present obligation to its employees that can be measured reliably and are
recognised over the period of service that employees are required to work to qualify for the services.
Deferred cash bonus awards and deferred share bonus awards are made to employees to incentivise performance over the vesting period. To
receive payment under an award, employees must provide service over the vesting period, typically three years from the grant date. The period over
which the expense for deferred cash and share bonus awards is recognised is based upon the common understanding between the employee and
the Group and the terms and conditions of the award. The Group considers that it is appropriate to recognise the awards over the period from the
date of grant to the date that the awards vest as this is the period over which the employees understand that they must provide service in order to
receive awards. The table on page 64 details the relevant award dates, payment dates and the period in which the income statement charge arises
for bonuses. No expense has been recognised in 2011 for the deferred bonuses granted in March 2012, as they are dependent upon future
performance rather than performance during 2011.
The accounting policies for share based payments and pensions and other post retirement benefits are under Note 38 and Note 39 respectively.
Staff costs 2011
£m
2010
£m
2009
£m
Performance costs 2,527 3,350 3,055
Salaries 6,277 6,151 4,893
Other share based payments 167 168 133
Social security costs 716 719 606
Post-retirement benefits 727 528 207
Total compensation costs 10,414 10,916 8,894
Bank payroll tax 76 96 225
Other 917 904 829
Non compensation costs 993 1,000 1,054
Staff costs 11,407 11,916 9,948
The UK Government applied a bank payroll tax of 50% to all discretionary bonuses over £25,000 awarded to UK bank employees between 9 December
2009 and 5 April 2010. The total bank payroll tax paid was £437m, of which £321m was recognised between 2009 and 2010. For 2011, a charge of
£76m has been recognised in relation to prior year deferrals, with the remaining £40m to be recognised over the period 2012 to 2013.
Staff costs above relate to continuing operations only. Staff costs arising on discontinued operations for 2011 and 2010 totalled nil (2009: £735m).
The average total number of persons employed by the Group including both continuing and discontinued operations was 149,700 (2010: 151,300).
Barclays PLC Annual Report 2011 www.barclays.com/annualreport 257
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