Barclays 2012 Annual Report Download - page 92

Implementation of Directors’ remuneration in 2012 continued
Group Finance Director remuneration – Chris Lucas
Salary
+
Pension
+
Benefits
+
Annual
Bonus +
Long Term
Incentive Plan
Award =
Total
Remuneration
2012 800 2012 200 2012 34 2012 0 2012 1,067 2012 2,101
2011 800 2011 200 2011 28 2011 1,800 2011 1,333 2011 4,161
Fixed Remuneration Variable Remuneration
The LTIP award shown above for 2012 is for the 2013-2015 performance period and the LTIP award for 2011 is for the 2012-2014 performance period.
Details of 2012 remuneration
Salary Chris Lucas’ salary for 2012 was £0.8m. The Committee did not increase his salary for 2013.
Pension As Group Finance Director Chris Lucas is contractually entitled to cash in lieu of pension contributions of
25% of his salary per annum. This reflects market practice for senior executives in comparable roles.
Benefits Chris Lucas’ 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. Chris is not
entitled to tax equalisation.
Annual Bonus On 27 June 2012, Chris Lucas agreed with the Board voluntarily to forgo any consideration for a bonus for
2012. This decision was made in the context of settlements reached by Barclays in relation to investigations
by UK and US authorities into submissions made by Barclays to the bodies that set various interbank offered
rates.
In the circumstances the Committee did not consider whether a bonus would be appropriate for 2012 but it
did still consider Chris Lucas’ performance during the year against Group and individual performance
measures. The Committee noted and confirmed the assessment of his line manager, Antony Jenkins, that
Chris Lucas had exceeded expectations for the year, contributing positively to the process of change
underway since Antony became Group Chief Executive. The Committee noted Chris Lucas’ effective
execution of Barclays capital planning, his leadership of the finance function and his contribution to the
Board’s business practices review and medium term planning. In doing so the Committee also considered
the 2012 financial highlights as detailed on page 78.
Long Term
Incentive Plan
2013-2015
The Committee decided to make an award to Chris Lucas under the Barclays Long Term Incentive Plan 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 £3.2m 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 Chris as shown
above is one-third x £3.2m, i.e. £1.067m. The 2013-2015 performance condition for Chris’ LTIP is identical to
that of Antony Jenkins’ 2013-2015 LTIP award as detailed on page 88, as is the subsequent holding period.
£000 £000 £000 £000 £000 £000
barclays.com/annualreport90 I Barclays PLC Annual Report 2012