Barclays 2013 Annual Report Download - page 100

Deferred bonuses are payable only once an employee meets certain conditions, including a specified period of service. This creates a timing
difference between the communication of the bonus pool and the charges that appear in the income statement which are reconciled in the
table below.
Reconciliation of total incentive awards granted to income statement charge (audited)
Barclays Group Investment Bank
Year ended
31.12.13
£m
Year ended
31.12.12
£m
%
Change
Year ended
31.12.13
£m
Year ended
31.12.12
£m
%
Change
Total incentive awards for 2013 2,378 2,168 10 1,574 1,394 13
Less: deferred bonuses awarded in 2013 (1,140) (987) 16 (1,042) (893) 17
Add: current year charges for deferred bonuses
from previous years 1,147 1,223 (6) 1,042 1,117 (7)
Othera169 21 144 75 92
Income statement charge for performance
costs 2,554 2,425 5 1,718 1,693 1
Note
a Difference between incentive awards granted and income statement charge for commissions, commitments and other long-term incentives.
 Employees only become eligible to receive payment from a deferred bonus once all the relevant conditions have been fulfilled, including the
provision of services to the Group
 The income statement charge for performance costs reflects the charge for employees’ actual services provided to the Group during the relevant
calendar year (including where those services fulfil conditions attached to previously deferred bonuses). It does not include charges for deferred
bonuses where conditions have not been met
 As a consequence, while the 2013 incentive awards granted increased 10% compared to 2012, the income statement charge for performance
costs increased 5%.
Income statement charge (audited)
Barclays Group Investment Bank
Year ended
31.12.13
£m
Year ended
31.12.12
£m
%
Change
Year ended
31.12.13
£m
Year ended
31.12.12
£m
%
Change
Deferred bonus charge 1,147 1,223 (6) 1,042 1,117 (7)
Current year bonus charges 957 867 10 482 405 19
Commissions, commitments and other incentives 450 335 34 194 171 13
Performance costs 2,554 2,425 5 1,718 1,693 1
Salaries 4,981 5,254 (5) 2,092 2,203 (5)
Social security costs 715 685 4 305 297 3
Post retirement benefits 688 612 12 161 147 10
Allowances and trading incentives 211 262 (19) 88 123 (28)
Other compensation costsa 467 521 (10) 270 204 32
Total compensation costsb 9,616 9,759 (1) 4,634 4,667 (1)
Other resourcing costs
Outsourcing 1,084 999 9 26 31 (16)
Redundancy and restructuring 687 68 186 41
Temporary staff costs 551 481 15 255 227 12
Other 217 160 36 77 68 13
Total other resourcing costs 2,539 1,708 49 544 367 48
Total staff costs 12,155 11,467 6 5,178 5,034 3
Compensation as % of adjusted net income 38.3% 37.5% 44.1% 40.3%
Compensation as % of adjusted income 34.2% 33.2% 43.2% 39.6%
Notes
a Investment Bank other compensation costs include allocations from Head Office and net recharges relating to compensation costs incurred in the Investment Bank but charged
to other businesses and charges from other businesses to the Investment Bank.
b In addition, £346m of Group compensation (2012: £44m) was capitalised as internally generated software.
 Total staff costs increased 6% to £12,155m, principally reflecting a £619m increase in redundancy and restructuring charges, a 5% increase in
performance costs and a 9% increase in outsourcing
 Performance costs increased 5% to £2,554m, reflecting a 10% increase to £957m in charges for current year cash and share bonuses and a
34% increase in commissions, commitments and other incentives to £450m. This was offset by a 6% decrease in the charge for deferred
bonuses to £1,147m
 Redundancy and restructuring charges increased £619m to £687m, due to a number of Transform initiatives.
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98 Barclays PLC Annual Report 2013
Remuneration report
2013 incentives continued