Barclays 2011 Annual Report Download - page 67

Table 23: Reconciliation of total incentive awards granted to income statement charge (audited)
Year Ended
31.12.11
£m
Year Ended
31.12.10
£m
Total incentive awards for 2011 2,578 3,484
Less: deferred bonuses awarded for 2011 (1,252) (1,177)
Add: current year charges for deferred bonuses from previous years 995 904
Other1206 139
Income statement charge for performance costs 2,527 3,350
Note to Table 23:
1 Difference between incentive awards granted and income statement charge for sales commissions, commitments and other incentives.
Employees only become eligible to receive payment from a deferred bonus once all of the relevant conditions have been fulfilled, including the provision
of services to the Group. The income statement charge for performance costs reflects the charge for employees’ actual services provided to the Group
during the relevant calendar year (including where those services fulfil performance conditions relating to previously deferred bonuses). It does not
include charges for deferred bonuses where performance conditions have not been met. As a consequence, while the 2011 incentive awards granted
were down 26% compared to 2010, the income statement charge for performance costs was down 25%.
Table 24: Income statement charge – total staff costs (audited)
Year Ended
31.12.11
£m
Year Ended
31.12.10
£m % Change
Performance costs 2,527 3,350 (25)
Salaries 6,277 6,151 2
Other share based payments 167 168 (1)
Social security costs 716 719 –
Post retirement benefits 727 528 38
Total compensation costs 10,414 10,916 (5)
Bank payroll tax 76 96 (21)
Other1917 904 1
Non compensation costs 993 1,000 (1)
Total staff costs 11,407 11,916 (4)
Total staff costs reduced 4% to £11,407m, principally reflecting the £823m reduction in performance costs offset by the impact of a £304m pension
credit recognised in 2010. Performance costs reduced 25% to £2,527m, principally reflecting reduced charges for current year cash bonuses.
It is currently anticipated that deferred bonuses will be charged to the income statement in the following years:
Actual Expected
Year in which income statement charge is expected to be taken for deferred bonuses2
Year Ended
31.12.10
£m
Year Ended
31.12.11
£m
Year Ended
31.12.12
£m
2013 and
beyond
Deferred bonuses from 2009 and earlier bonus pools 904 405 139 23
Deferred bonuses from 2010 bonus pool – 590 387 205
Deferred bonuses from 2011 bonus pool – – 601 651
Income statement charge for deferred bonuses 904 995 1,127 879
Notes to Table 24:
1 Includes staff training, redundancy and recruitment.
2 The actual amount charged depends upon whether performance conditions have been met and will vary compared with the above expectation.
Salaries increased 2% to £6,277m in line with inflation on a moderately declining average headcount. The post retirement benefits charge increased
38% to £727m reflecting the non-recurrence of a £304m credit in 2010. There have been no material changes or augmentations to any of the post
retirement benefit programmes in 2011.
Glossary for Tables 1, 2, 4, 16, 22 and 23
– Bonus pool as % of PBT (pre bonus): Calculated as bonus awards divided by profit before tax excluding the income statement charge for bonus awards.
– Current year cash bonus: Bonus paid in cash on a discretionary basis in respect of performance in the period.
– Current year share bonus: Bonus paid in shares on a discretionary basis in respect of performance in the period. The shares may be subject to a
holding period and/or shareholding policy.
– Deferred cash bonus: Award granted on a discretionary basis and paid in cash for, and subject to, future service over a period of three years.
– Deferred share bonus: Award granted on a discretionary basis and paid in shares for, and subject to, future service over a period of three years.
– Sales commissions, commitments and other incentives: Includes commission-based arrangements, guaranteed incentives and long term incentive
plan awards.
– Incentive awards: Total of current year and deferred bonus plus sales commissions, guaranteed incentives and long term incentive plan awards.
Barclays PLC Annual Report 2011 www.barclays.com/annualreport 65
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