Barclays 2008 Annual Report Download - page 180

Corporate governance
Remuneration Report
178 Barclays PLC Annual Report 2008 |Find out more at www.barclays.com/annualreport08
Table 5: Pension provision
Transfer Transfer
Pension value of value of
Accrued accrued Pension Accrued accrued accrued
pension during 2008 accrued pension pension pension Increase
at 31st (including during 2008 at 31st at 31st at 31st in transfer Annual cash
Age at 31st Completed December increase for (excluding December December December value during in lieu of
December years of 2007 inflation) inflation) 2008 2007 2008 the year pension
2008 service £000 £000 £000 £000 £000 £000 £000 £000
John Varley 52 26 489 83 59 572 9,463 12,328 2,865 –
Robert E Diamond Jr 57 12 38 7545 214 280 66 –
Chris Lucas 48 1–––––––159
Frits Seegers 50 2–––––––175
Table 6: Interests in shares of Barclays PLC
at 31st December 2008
At 1st January 2008 At 31st December 2008
Non- Non-
Beneficial beneficial Beneficial beneficial
Executive Directors
John Varley 470,650 – 593,266 –
Robert E Diamond Jr 3,402,192 – 5,866,965 –
Chris Lucas 38,003 – 76,038 –
Frits Seegers 699,870 – 897,747 –
Beneficial interests include shares held either directly, or through a nominee,
their spouse, and children under 18. They include any interests held through
Sharepurchase. Non-beneficial interests include any interests in shares
where the executive Director holds the legal, but not beneficial interest.
In addition to the shares above Mr Diamond also holds 200,000 shares
in Barclays Global Investors UK Holdings Limited. Mr Seegers has granted
a third party bank security over 896,346 of the ordinary shares he holds.
Mr Seegers retains beneficial ownership of these shares. He also holds 1,000
ordinary shares in Absa Group Limited. Note 45 provides further information
on Directors and officers shareholdings. There were no changes to the
interests of executive Directors in shares of Barclays PLC in the period
31st December 2008 to 27th February 2009.
Pensions
Chris Lucas and Frits Seegers receive a cash allowance of 25%of salary
in lieu of joining a Group pension scheme.
John Varley is a member of the Group’s closed UK defined benefit
pension scheme. This non-contributory arrangement provides a pension
benefit of two thirds of his pensionable salary at the normal retirement
age of 60. Should he retire at 55, an unreduced pension of 60%of
pensionable salary would be provided. There were no changes to the
pension arrangements for Mr Varley during the year. His increase in
pension of £83,000 during the year relates to accrual under the scheme.
The scheme also provides, whilst in employment, a death in service
dependant’s pension of 50%of the pension that would have been payable
if employment had continued until normal pension age. Mr Varley also has
a defined contribution benefit of £549,816 as at 31st December 2008 in
respect of a previous transfer from a freestanding AVC.
Robert E Diamond Jr participates in the Group’s US non-contributory
defined benefit arrangements which provide a benefit at age 65 of 1/60th
of final average pensionable pay for each year of service up to a maximum
of 30 years. In line with current market practice, final average pensionable
pay includes salary and an element of bonus up to a current combined
maximum of US$350,000. The benefits are provided through the US
defined benefit plan (a funded arrangement), and the US Restoration
Plan (an unfunded arrangement). The scheme also provides a death in
service spouse’s pension of approximately 50%of the pension that would
have been payable had early retirement occurred on the date of death.
Mr Diamond also participates in the Barclays Bank PLC 401K Thrift
Savings Plan and Thrift Restoration Plan, which are both defined
contribution plans. The company contributions in 2008 amounted
to £11,745 (US$21,859).
Table 5 sets out the pension benefits of the executive Directors.
Pension accrued during the year represents the change in accrued
pension during the year (including inflation at the prescribed rate of
5%(UK)). Pensions paid from the UK final salary section
of the applicable fund are reviewed annually and increase by a
minimum of the increase in the retail prices index (capped at 5%),
subject to the scheme rules.
The 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.
During 2008, the independent UK Retirement Fund Trustee changed
the transfer value basis for all members. The change reflected different
mortality assumptions and a lower discount rate. This contributed £1.4m
of the increase in transfer value of John Varley’s pension during the year.
Other benefits
Executive Directors are provided with benefits including private
medical insurance, life and disability cover, the use of a company-
owned vehicle or the cash equivalent, tax advice and accommodation
overseas when required for business purposes. These benefits are
available on similar terms to each executive Director. No Director has
an expense allowance.
Shareholding guideline
The Committee guideline that executive Directors should hold, as a
minimum, the equivalent of one times their base salary in Barclays
shares, including shares awarded under ESAS, was met by all
executive Directors at 31st December 2007. During the year the
Committee increased this guideline to the higher of two times salary
or one-third of total remuneration for the last three years. Executive
Directors have five years from their appointment to meet this guideline
and a reasonable period to build up to the guideline again, if it is
not met because of a share price fall. Table 6 shows the executive
Directors’ shareholdings. Table 7 shows the indicative change
in value of the executive Directors’ total share interests during 2008.
Indicative
Indicative Indicative decrease
value at value at on total share
1st January Change in 31stDecember interest
2008 holdings 2008 2008
£m £m £m £m
Executive Directors
John Varley 7.1 1.4 2.5 (6.0)
Robert E Diamond Jr 50.9 22.3 23.5 (49.7)
Chris Lucas 1.0 1.0 0.7 (1.3)
Frits Seegers 6.2 2.6 2.8 (6.0)
Share interests are beneficial interests plus share plan interests including
any initial or provisional allocations and vested awards under ESAS, PSP,
ISOP, ESOS and Sharesave.
Table 7: Indicative change in value of executive Director
total share interests