Barclays 2014 Annual Report Download - page 81

barclays.com/annualreport Barclays PLC Annual Report 2014 I 79
Governance: Remuneration report
Performance, pay and distribution of earnings to key stakeholders
Since 2010 there has been a significant shift in the allocation of earnings between employees and shareholders. Comparing 2014 against
2010, adjusted profit before tax (excluding costs to achieve for Transform in 2014) has increased by 18%, against an absolute reduction in the
Group incentive pool of 47%. Over the same period the distribution to shareholders and government through dividends paid and taxes borne
have increased by 99% and 11% respectively, while Group compensation costs have reduced by 20%.
How did we perform and pay in 2014?
Adjusted profit before tax increased between 2013 and 2014 by 12%, while the absolute reduction in the Group incentive pool was 22%.
After adjusting for the introduction of RBP, the reduction in the Group incentive pool would be 11%.
Adjusted profit
before tax
Adjusted profit
before tax ex CTAa
£5,502m
£6,667m
£4,908mb
£6,117mb
£7,599m
£5,481m
£5,641m
2014
2013
2012
2011
2010
Adjusted profit before tax
£1,860m
£2,378m
£2,168m
£2,578m
£3,484m
Group
incentive pool
Group incentive pool
2014
2013
2012
2011
2010
Notes
a Adjusted profit before tax (ex CTA) is only relevant for 2013 and 2014. CTA relates to
the costs to achieve Transform. Transform is a package of measures to realise Barclays’
goal of becoming the ‘Go- to’ Bank, including delivering returns on equity higher than
cost of equity in all of the Group’s businesses, and longer-term action in culture,
rewards, control and costs.
b 2013 adjusted profit before tax includes the restatement for Lehman receivables.
How were the earnings distributed to our key stakeholders?
We believe that the best way to support our stakeholders is by operating a strong, profitable and growing business, which creates jobs and contributes
to the economic success of the communities in which we live and work. The charts below detail how the earnings generated by our businesses have
been distributed to a number of key stakeholders including shareholders (in the form of dividends), government (in the form of taxes) and employees.
2014
2013
2012
2011
2010
6.5p
6.5p
6.5p
6.0p
5.5p
£1,057m
£859m
£733m
£660m
£531m
38%
42%
18%
24%
19%
Dividend
per share
Adjusted
dividend
payout
ratioa
Dividends
paid to
shareholders
Shareholders
Note
a Calculated as dividend per share divided by adjusted earnings per share.
Capital
2014
2013
2012
Common
Equity Tier 1
(CET1)a
10.3%
9.1%
8.2%
Note
a
The Group changed to CRD IV basis in 2014. For 2012 and 2013, estimated fully loaded CET1
ratios are disclosed. CRD III was the basis of preparation applicable until the end of 2013.
£3,485m
£3,374m
£3,234m
£3,187m
£3,044m
£2,856m
£3,341m
£3,138m
£3,078m
£3,011m
Taxes bornea
Taxes collectedb
Government
2014
2013
2012
2011
2010
Notes
a Taxes borne are the Company’s own tax contribution, representing taxes paid or
suffered at source by the Company in the year.
b Taxes collected are those collected from employees and customers on behalf of
governments. The VAT collected represents Barclays contribution to the public
finances and comprises VAT charged on sales to clients less VAT incurred on costs
that Barclays is entitled to recover.
37.7%a b
38.7%c
37.5%
42.6%
42.4%
£8,891m
£9,616m
£9,759m
£10,523m
£11,079m
Compensation
to adjusted
net income
Group
compensation
costs
Employees
2014
2013
2012
2011
2010
Notes
a If RBP had not been introduced in 2014 and an equivalent amount provided through
bonus, the Group ratio would have been 1% lower.
b For the Core business, the ratio is at 35.7% for 2014.
c 2013 ratio includes the restatement for Lehman receivables.
The Strategic Report Governance Risk review Financial review Financial statements Shareholder information