Barclays 2007 Annual Report Download - page 154

Corporate governance
Remuneration report
152 Barclays PLC Annual Report 2007
Executive Directors: pension accrued assuming retirement at normal pension agea, b, c
Pension Transfer Transfer
accrued Pension value of value of
Accrued during accrued Accrued accrued accrued Increase in
pension 2007 during pension pension pension transfer
Age at 31st (including 2007 at 31st at 31st at 31st value
at 31st Completed December increase for (excluding December December December during
December years 2006 inflation) inflation) 2007 2006 2007 the year
2007 of service £000 £000 £000 £000 £000 £000 £000
Executive Directors
John Varleyd, e 51 25 418 71 55 489 7,696 9,463 1,767
Robert E Diamond Jrf, g 56 11 36 2238195 214 19
Gary Hoffman e47 25 253 20 11 273 2,352 2,598 246
Chris Lucash47 – – ––––––
Frits Seegers h49 1 – ––––––
Former Director
Naguib Kherajh, i 43 10 – ––––––
Notes
aPension accrued during the year represents the change in accrued pension (including
inflation at the prescribed rate of 3.9%) which occurred during the entire year. The
pensions paid from the final salary section of the applicable pension fund are reviewed
annually. Pensions increase by a minimum of the increase in the retail prices index (up to
a maximum of 5%), subject to the scheme rules.
bThe transfer values have been calculated in a manner consistent with the Retirement
Benefit Scheme – Transfer Values (GN11) published by the Institute of Actuaries and the
Faculty of Actuaries.
cWith the exception of the benefits provided through the US Restoration Plan for Robert E
Diamond Jr, the pension benefits for all Directors shown above are provided for on a
funded basis.
dJohn Varley is a member of the Group’s closed UK defined benefit pension arrangement.
This non-contributory pension scheme has a normal pension age of 60 and in
accordance with his service contract, the scheme provides him with a pension benefit of
66.67% of his Pensionable Salary at normal pension age. Should John Varley retire at
age 55, the scheme provides for an unreduced pension of 60% of Pensionable Salary.
eIn addition to the transfer value of accrued pension at 31st December 2007, John Varley
and Gary Hoffman also have defined contribution benefits. John Varley’s benefit is in
respect of a transfer from a previous pension arrangement while Gary Hoffman’s benefit
is in respect of Special Company Contributions (Bonus Sacrifice). The fund values of
these arrangements as at 31st December 2007 for John Varley and Gary Hoffman were
£689,214 and £702,078 respectively.
fThe benefits shown above in respect of Robert E Diamond Jr’s participation in the
Group’s US non-contributory defined benefit arrangement and the US Restoration
Plan have been converted to Pounds Sterling using the 2007 year-end exchange rate
of US$2.00334 (2006: US$1.96).
gRobert E Diamond Jr is also a member of the Barclays Bank PLC 401K Thrift Savings
Plan and Thrift Restoration Plan. These are US defined contribution plans. Company
contributions into these plans in 2007 amounted to £10,233 (US$20,500).
hChris Lucas, Naguib Kheraj and Frits Seegers do not participate in any of the Group’s
pension arrangements. Instead they receive a cash allowance in lieu of pension
contributions of 25%, 23% and 25% of their respective salaries. Chris Lucas’ pro-rated
cash allowance in 2007 amounted to £112,500. Naguib Kheraj, who ceased to be a
Director on 31st March 2007, received a pro-rated cash allowance of £40,250, while
Frits Seegers’ cash allowance in 2007 was £175,000.
iIn addition to the cash allowance in lieu of pension contributions, Naguib Kheraj
has defined contribution benefits in respect of a previous period of participation in
afterwork. The fund value of this deferred benefit as at 31st March 2007, when he
ceased to be an executive Director, was £110,821.