Barclays 2012 Annual Report Download - page 79

Remuneration structure
Employees receive salary, pension and benefits and are eligible to be
considered for a discretionary bonus. Employees in some customer-
facing businesses participate in incentive plans including plans based
on customer feedback and other measures of the quality of service
they provide to customers. The table on this page provides further
details of our employee remuneration structure. The structure is
aligned with the remuneration structure for executive Directors set out
in more detail in the Directors’ remuneration policy section of this
report. In 2013, only executive Directors and the most senior executives
will participate in the Barclays Long Term Incentive Plan.
Fixed remuneration
Salary  Salaries reflect individuals’ skills and experience and are reviewed annually in the context of annual
performance assessment. They are increased where justified by role change, increased responsibility or
where justified by the latest available market data. Salaries may also be increased in line with local statutory
requirements and in line with union and works council commitments.
Pension and benefits  The provision of a market competitive package of benefits is important to attracting and retaining the
talented staff Barclays needs to deliver Barclays strategy. A new defined contribution pension scheme, the
Barclays Pension Savings Plan, and a flexible benefits scheme, ‘My Rewards’, was launched in the UK in
September 2012. This enables employees to choose from a range of benefits including the level of their
pension contribution, life assurance and private health benefits, annual leave (with the ability to ‘buy’ and
‘sell’ subject to certain parameters), and participation in Barclays ‘all employee’ share plans (HMRC approved
for UK participants). The cost of providing the benefits is defined and controlled. My Rewards will be rolled
out globally to all employees over the next few years.
Variable remuneration
Annual bonus  Annual bonuses incentivise the achievement of Group, business and individual objectives.
 The ability to recognise performance through variable remuneration enables the Group to control flexibly its
cost base and to react to events and market circumstances. Bonuses remain a key feature of remuneration
practice in the highly competitive and mobile market for talent within the financial services sector. The
Committee is careful to control the proportion of variable to fixed remuneration paid to individuals.
 Bonus deferral requirements are significantly in excess of FSA requirements.
 For FSA Remuneration Code Staff (Code Staff) the deferral rate is a minimum of 40% (for bonuses of no
more than £500,000) or 60% (for bonuses of more than £500,000).
 For non Code Staff, bonuses over £65,000 are subject to a graduated level of deferral.
 2012 bonuses awarded to Managing Directors in the Investment Bank are 100% deferred.
 Deferred bonuses are split equally between deferred cash bonuses under the Cash Value Plan (CVP) and
deferred share bonuses under the Share Value Plan (SVP), each vesting in equal annual tranches over three
years subject to continued service and malus. For Code Staff an additional six month holding period will be
applied to 2012 share bonuses when they vest.
 Deferred bonuses are subject to malus conditions which enable the Committee to reduce the vesting level of
deferred bonuses (including to nil) in the event of, for example, employee negligence or inappropriate
conduct, or a material failure of risk management.
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