Barclays 2011 Annual Report Download - page 61

Pension
The executive Directors received an annual cash allowance in lieu of
membership of a Barclays pension plan. This was 50% and 25% of salary
for Bob Diamond and Chris Lucas respectively. Further details are shown in
Table 6. The accrued pension of £60,000 at 31 December 2011 for Bob
Diamond relates to US pension plans in which he ceased to be an active
member as at 31 December 2010.
Benefits
Executive Directors are provided with benefits including private medical
insurance, life and disability cover, accommodation as required for
business purposes, tax advice, the use of a company vehicle or the cash
equivalent and the use of a company driver when required for business
purposes. Table 7 shows the benefits received by the executive Directors.
Table 6: Pension (audited)
Age at 31
December
2011
Completed
years of
service
Accrued
pension
at 31
December
2011
£000
Transfer
value of
accrued
pension
at 31
December
2010
£000
Transfer
value of
accrued
pension
at 31
December
2011
£000
Increase
in transfer
value during
2011
£000
2011
cash in
lieu of
pension
£000
Bob Diamond 60 15 60 473 599 126 675
Chris Lucas 51 4 ––– – 200
Note to Table 6: Bob Diamond ceased to be an active member of Barclays US defined benefit and defined contribution plans as at 31 December 2010. The defined benefit plans were the US
Staff Pension Plan (funded) and the US Restoration Plan (unfunded). The defined contribution plans were the Barclays Bank PLC 401K Thrift Savings Plan and the Thrift Restoration Plan.
The increase in the transfer value of accrued pension for Bob Diamond during 2011 is primarily due to changes in US financial and demographic assumptions.
Table 7: Benefits (audited)
2011
£000
2010
£000
Bob Diamond 474 268
Chris Lucas 28 25
Table 8: Tax equalisation (audited)
2011
£000
2010
£000
Bob Diamond 5,745 –
Chris Lucas ––
Table 9: Total of salary, current year bonus, cash in lieu of pension and benefits (audited)
(calculated in accordance with Schedule 8 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008)
2011
£000
2010
£000
Bob Diamond 2,499 2,318
Chris Lucas 1,028 1,699
The total for 2011 for Bob Diamond including tax equalisation is £8.244m (the sum of £2.499m shown above and gross costs of tax equalisation of
£5.745m shown in Table 8).
Tax equalisation
Bob Diamond is a UK taxpayer and paid UK income tax on his
employment income (that exceeded the higher rate taxable band)
at 50% in 2011. In accordance with his contract, and consistent with
arrangements for other senior executives in global companies required
to work in multiple locations, he is tax equalised. This tax equalisation is
not remuneration for him. Bob Diamond is tax equalised on tax above
the UK rate where that cannot be offset by a double tax treaty. The tax
equalisation costs in 2011, shown in Table 8, included an amount met
by Barclays in respect of taxes that arose as a result of Bob Diamond’s
relocation from the US to the UK, which was required by the Board
for his appointment as Chief Executive. In particular, the difference in
treatment of capital gains on historical share awards between the US
and UK resulted in a one-off additional tax charge, which could not be
offset by a double tax treaty. Because of the one-off nature of a large
part of the 2011 cost, the Committee expects the 2012 tax equalisation
costs to be significantly reduced.
Barclays PLC Annual Report 2011 www.barclays.com/annualreport 59
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