Barclays 2014 Annual Report Download - page 86

84 I Barclays PLC Annual Report 2014 barclays.com/annualreport
Governance: Remuneration report
Deferral levels vary according to the incentive award quantum. With reductions in incentive award levels, this has reduced the proportion of the
bonus that is deferred.
Deferred bonuses are delivered, subject to the rules, and only once an employee meets certain conditions, including continued service. This
creates a timing difference between the communication of the bonus pool and the charges that appear in the income statement which are
reconciled in the table below.
Reconciliation of total incentive awards granted to income statement charge (audited)
Barclays Group Investment Bank
Year Ended
31.12.14
£m
Year Ended
31.12.13
£m % Change
Year Ended
31.12.14
£m
Year Ended
31.12.13a
£m % Change
Total incentive awards for 2014 1,860 2,378 22 1,053 1,378 24
Less: deferred bonuses awarded in 2014 (757) (1,140) 34 (634) (921) 31
Add: current year charges for deferred bonuses from previous years 1,067 1,147 7 854 933 8
Otherb (108) 169 12 99 88
Income statement charge for performance costs 2,062 2,554 19 1,285 1,489 14
Notes
a 2013 Investment Bank figures have been restated to reflect the business reorganisation outlined in the Strategy Update on 8 May 2014.
b Difference between incentive awards granted and income statement charge for commissions, commitments and other incentives.
Q Employees only become eligible to receive shares or cash under a deferred award once all of the relevant conditions have been fulfilled,
including the provision of services to the Group
Q 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 conditions attached to previously deferred bonuses). It does not include charges for
deferred bonuses where conditions have not been met
Q As a consequence, while the 2014 Group incentive awards granted decreased 22% compared to 2013, the income statement charge for
performance costs decreased 19%
Income statement charge (audited)
Barclays Group Investment Bank
Year Ended
31.12.14
£m
Year Ended
31.12.13
£m % Change
Year Ended
31.12.14
£m
Year Ended
31.12.13a
£m % Change
Deferred bonus charge 1,067 1,147 7 854 933 8
Current year bonus charges 885 957 8 381 411 7
Commissions, commitments and other incentives 110 450 76 50 145 66
Performance costs 2,062 2,554 19 1,285 1,489 14
Salariesb4,998 4,981 – 1,749 1,787 2
Social security costs 659 715 8 268 294 9
Post retirement benefitsc624 688 9 120 151 21
Allowances and trading incentives 170 211 19 64 86 26
Other compensation costs 378 467 19 134 171 22
Total compensation costsd8,891 9,616 8 3,620 3,978 9
Other resourcing costs
Outsourcing 1,055 1,084 3 9 26 65
Redundancy and restructuring 358 687 48 239 186 (28)
Temporary staff costs 530 551 4 176 249 29
Other 171 217 21 42 69 39
Total other resourcing costs 2,114 2,539 17 466 530 12
Total staff costs 11,005 12,155 9 4,086 4,508 9
Compensation as % of adjusted net income 37.7% 38.7% 47.6% 46.2%
Compensation as % of adjusted income 34.6% 34.5% 47.7% 46.3%
Notes
a 2013 Investment Bank figures have been restated to reflect the business reorganisation outlined in the Strategy Update on 8 May 2014.
b Salaries include Role Based Pay and fixed pay allowances.
c Post retirement benefits charge includes £242m (2013: £261m) in respect of defined contribution schemes and £382m (2013: £427m) in respect of defined benefit schemes.
d In addition, £250m (2013: £346m) of Group compensation was capitalised as internally generated software.
Q Total staff costs decreased 9% to £11,005m, principally reflecting a 19% decrease in performance costs and a 48% decrease in redundancy and
restructuring charges
Q Performance costs decreased 19% to £2,062m, reflecting an 8% decrease to £885m in charges for current year cash and share bonuses, a 7%
decrease in the charge for deferred bonuses to £1,067m and a 76% decrease in commissions, commitments and other incentives to £110m
Q Redundancy and restructuring charges decreased 48% to £358m, due to a number of Transform initiatives that occurred in 2013
2014 incentives