Barclays 2014 Annual Report Download - page 104

102 I Barclays PLC Annual Report 2014 barclays.com/annualreport
Governance: Remuneration report
This remuneration policy sets out the framework for how the Committee’s remuneration strategy will be executed for the Directors over the three
years beginning on the date of the 2014 AGM. This is to be achieved by having a remuneration policy that seeks to:
Q provide an appropriate and competitive mix of fixed and variable pay which, through its short and long-term components, incentivises
management and is aligned to shareholders;
Q provide direct line of sight with Barclays’ strategy through the incentive programmes; and
Q comply with and adapt to the changing regulatory landscape.
Remuneration policy for executive Directors
Element and purpose Operation Maximum value and performance measures
A. Fixed pay
Salary
To reward skills and
experience appropriate for
the role and provide 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 the following banks: Bank of America,
BBVA, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank,
HSBC, JP Morgan, Lloyds, Morgan Stanley, RBS, Santander,
Société Générale, Standard Chartered and UBS. The
Committee may amend the list of comparator companies
to ensure it remains relevant to Barclays or if circumstances
make this necessary (for example, as a result of takeovers
or mergers).
Salaries are reviewed annually and any changes are effective
from 1 April in the financial year.
Salaries for executive Directors are set at a
point within the benchmark range
determined by the Committee taking into
account their experience and performance.
Increases for the current executive Directors
over the policy period will be no more than
local market employee increases other than
in exceptional circumstances where the
Committee judges that an increase is needed
to bring an executive Director’s salary into
line with that of our competitors. In such
circumstances Barclays would consult with
its major shareholders.
Role Based Pay
To enable competitive
remuneration opportunity in
recognition of the breadth
and depth of the role
Paid quarterly in shares which are subject to a holding period
with restrictions lifting over five years (20% each year). As
the executive Directors beneficially own the shares, they will
be entitled to any dividends paid on those shares.
RBP will be reviewed and fixed annually and may be reduced
or increased in certain circumstances. Any changes are
effective from 1 January in the relevant financial year.
The maximum RBP for executive Directors is
set at £950,000 for the Group Chief
Executive, Antony Jenkins, and £750,000 for
the Group Finance Director, Tushar Morzaria.
It is not pensionable (except where required
under local law). These amounts may be
reduced but are at the maxima and may not
be increased above this level.
There are no performance measures.
Pension
To enable executive Directors
to build long-term retirement
savings
Executive Directors receive an annual cash allowance in lieu
of participation in a pension arrangement.
The maximum annual cash allowance is
33% of salary for the Group Chief Executive
and 25% of salary for the Group Finance
Director and any other executive Director.
Benefits
To provide a competitive and
cost effective benefits
package appropriate to role
and location
Executive Directors’ benefits provision includes private
medical cover, annual health check, life and ill health income
protection, tax advice, car cash allowance, and use of a
company vehicle and driver when required for business
purposes.
Additional benefits may be offered that are minor in nature
or are normal market practice in a country to which an
executive Director relocates or from which an executive
Director is recruited.
In addition to the above, if an executive Director were to
relocate, additional support would be provided for a defined
and limited period of time in line with Barclays’ general
employee mobility policy including provision of temporary
accommodation, payment of removal costs and relocation
flights. Barclays will pay the executive Director’s tax on the
relocation costs but will not tax equalise and will also not
pay the tax on his or her other employment income.
The maximum value of the benefit is
determined by the nature of the benefit itself
and costs of provision may depend on
external factors, e.g. insurance costs.
Directors’ remuneration policy
Barclays’ forward looking remuneration policy for Directors was approved at the 2014 AGM held on 24 April 2014 and
applies for three years from that date. The full policy can be found on pages 100 to 110 of the 2013 Annual Report or at
www.barclays.com/annualreport. This section sets out an abridged version of the Directors’ remuneration policy and is
provided for information only.