Barclays 2012 Annual Report Download - page 90

Group Chief Executive remuneration – Antony Jenkins
Salary
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Pension
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Benefits
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Annual
Bonus +
Long Term
Incentive Plan
Award =
Total
Remuneration
2012 833 2012 215 2012 81 2012 0 2012 1,467 2012 2,596
Fixed Remuneration Variable Remuneration
We have shown Antony Jenkins’ full remuneration for the whole of 2012 in the interests of clarity and transparency. The LTIP award shown above
for 2012 is for the 2013-2015 performance period.
Details of 2012 remuneration
Salary The 2012 salary shown above of £0.833m is the salary Antony Jenkins received in respect of the whole of
2012. This reflects a salary in 2012 of £0.7m per annum for Antony’s role as CEO of Retail and Business
Banking (until 29 August 2012) and £1.1m per annum as Group Chief Executive (from 30 August 2012). The
Committee did not increase Antony Jenkins’ salary for 2013.
Pension The 2012 pension value shown above of £0.215m is in respect of the whole of 2012. This reflects
participation in the Afterwork pension plan from 1 January 2012 to 31 March 2012, cash in lieu of pension of
21% of salary from 1 April 2012 to 29 August 2012, and cash in lieu of pension of 33% of salary from 30
August 2012. The cash in lieu of pension of 33% reflects market practice for senior executives in comparable
roles.
Benefits Antony Jenkins’ benefits include private medical cover, life and ill-health income protection, tax advice, car
allowance and the use of a company vehicle and driver when required for business purposes. Antony is not
entitled to tax equalisation.
Annual Bonus The Committee considered Antony Jenkins’ performance for the whole of 2012 in the round. It assessed his
performance against Group, business (by reference to his previous role as CEO of Retail and Business
Banking up to 29 August 2012) and individual measures. In doing so the Committee considered 2012
financial performance, including the highlights which are detailed on page 78.
In considering his 2012 performance the Committee considered that Antony Jenkins had delivered strong
Retail and Business Banking performance prior to accepting the role of Group Chief Executive at a difficult
time for Barclays. Since that time the Committee agreed he has quickly established a leadership profile that
differentiates him from predecessors and a commitment to leading the changes required including
strengthening the culture and control environment across Barclays. The Committee welcomed Antony
Jenkins’ contribution to its own work in managing remuneration costs and redressing the balance between
employee and shareholder returns.
On 1 February 2013 Antony Jenkins announced that he did not wish to be considered for a bonus for 2012,
citing his wish to bear an appropriate degree of accountability for multiple issues besetting the bank during
the year.
Long Term
Incentive Plan
2013-2015
The Committee decided to make an award to Antony Jenkins under the Barclays LTIP for the 2013-2015
performance period with a maximum potential payout value of 400% of his salary at the date of award (not
taking into account the potential effect of share price movement between award and any payout).
The LTIP maximum value of £4.4m is based on the maximum number of shares that can vest at the end of a
performance period of three years. The maximum number of shares is 400% of salary at the start of the
performance period divided by the share price at the date the award is made. For the purposes of assessing
the ‘value at award’ of the LTIP (taking into account the range of possible outcomes) Barclays historical
approach has been to ascribe a value of one-third of the maximum value assuming no share price
movement. So on the basis of this approach the ‘value at award’ of the maximum LTIP to Antony as shown
above is one-third x £4.4m, i.e. £1.467m. For the 2013-2015 Barclays LTIP, performance conditions will be
based on financial performance (measured on return on risk weighted assets), risk (measured by loan loss
rate) and a balanced scorecard. Any award that vests after three years will be subject to a further two year
holding period.
£000 £000 £000 £000 £000 £000
2012 remuneration outcomes for executive Directors
This section explains how the Group remuneration policy for executive Directors has been implemented during 2012.
Implementation of Directors’ remuneration in 2012
barclays.com/annualreport88 I Barclays PLC Annual Report 2012