Barclays 2012 Annual Report Download - page 85

Directors’ remuneration policy
2013 Remuneration policy for executive Directors
This section describes Barclays forward-looking remuneration policy for executive Directors, explaining how each
element of executive Directors’ remuneration packages operates. Total remuneration packages for executive
Directors comprise salary, pension, benefits, annual bonus and long term incentive plan awards.
Salary +Pension +Benefits +Annual
Bonus +Long Term
Incentive Plan
Award =Total
Remuneration
Fixed Remuneration Variable Remuneration
2013 remuneration policy for executive Directors
Purpose Operation Value and applicable performance measures
Salary
Rewards skills and
experience and provides the
basis for a competitive
remuneration package
Salaries are determined with reference to market practice and market
data (on which the Committee receives independent advice), and
reflect individual experience and role.
Executive Directors’ salaries are benchmarked against comparable
roles in other banks and FTSE 30 companies.
Salaries are reviewed annually and increases are made only
exceptionally to reflect market movements and change in job
responsibilities. The Committee notes and manages the potential for
salary increases to have a ‘ratchet effect’ on total remuneration
because of the linkage between salary and other elements of the
remuneration package such as cash in lieu of pension, bonus and
long term incentive awards.
Reviewed annually but increased
only exceptionally.
Pension
Enables executive Directors
to build long term
retirement savings
Current executive Directors receive an annual cash allowance in lieu
of participation in a pension arrangement.
This is a common arrangement in executive remuneration, reflecting
recent and continuing changes in the UK taxation of pension
contributions. The rates of these allowances (as a percentage of
salary) for executive Directors exceed pension contribution rates for
the broader employee population. This reflects market practice for
senior executives. The rate of cash allowance in lieu of pension for
any new executive Director is appropriately benchmarked at the time
of appointment.
Group Chief Executive – currently
33% of salary.
Group Finance Director –
currently 25% of salary.
Reviewed annually but increased
only exceptionally.
Benefits
Protects against risks and
provides other benefits
Executive Directors’ benefits provision includes private medical cover,
life and ill-health income protection, tax advice, the use of a company
vehicle or the cash equivalent, and use of a company vehicle and
driver when required for business purposes.
The value of benefits in 2012 was
£81,000 for the current Group
Chief Executive (including
benefits received in his previous
role as CEO of Retail and Business
Banking) and £34,000 for the
Group Finance Director.
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