Barclays 2014 Annual Report Download - page 31

barclays.com/annualreport Barclays PLC Annual Report 2014 I 29
Running the company well
Becoming ‘Go-To’
Executive Directors
Executive Directors: Single total figure for 2014 remuneration (audited)
The following table shows a single total figure for 2014 remuneration in respect of qualifying service for each executive Director together with
comparative figures for 2013.
Salary
£000
Role Based Pay
£000
Taxable benefits
£000
Annual bonus
£000
LTIP
£000
Pension
£000
Total
£000
2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
Antony Jenkins 1,100 1,100 950 – 100 138 1,100 – 1,854 – 363 364 5,467 1,602
Tushar Morzaria 800 171 750 – 95 14 900 1,200 – – 200 43 2,745 1,428
The single total figure for 2014 for the executive Directors is higher than for 2013 since Antony Jenkins voluntarily declined a 2013 bonus and
the current executive Directors had no LTIP vesting in 2013. Antony Jenkins has an LTIP award scheduled for release for the performance period
2012-2014 which is shown in the table. Tushar Morzaria joined the Board with effect from 15 October 2013 so his 2013 salary, pension and benefits
relate to his part year qualifying service.
Additional information in respect of each element of pay for the executive Directors (audited)
Salary
Antony Jenkins is paid a salary of £1,100,000 per annum as Group Chief Executive. Tushar Morzaria has been paid a salary of £800,000 per annum
since his appointment to the Group Finance Director role.
Role Based Pay (RBP)
With effect from 1 January 2014, both executive Directors received RBP. RBP is delivered quarterly in shares which are subject to a holding period
with restrictions lifting over five years (20% each year). The value shown is of shares at the date awarded.
Taxable benefits
Taxable benefits include private medical cover, life and ill health income protection, tax advice, relocation, home leave related costs, car allowance
and the use of a company vehicle and driver when required for business purposes.
Annual Bonus
Annual bonuses are discretionary and are typically awarded in Q1 following the financial year to which they relate. The 2014 bonus awards
reflect the Committee’s assessment of the extent to which each of the executive Directors achieved their Financial (50% weighting) and
Balanced Scorecard (35% weighting) performance measures and their personal objectives (15% weighting), and an holistic assessment of all
other relevant factors.
A summary of the considerations and rationale for the bonus outcomes are set out below. For more information see pages 87 and 88.
Financial (50% weighting)
The approach adopted for assessing financial performance is based on driving balanced performance outcomes across the financial measures –
Adjusted profit before tax, Adjusted Costs ex CTA, CET1 ratio (fully loaded basis) and the leverage ratio, weighted 20%, 10%, 10%, 10% respectively
(total of 50% weighting). In line with this, performance is initially assessed against a target range for each financial measure with a binary outcome
i.e. below range (zero) and within range (100%). After this the Committee is required to apply discretion, considering all relevant factors, to ensure
that the final outcome is appropriate.
As each financial target has been met or exceeded, a formulaic assessment of the current outcomes against financial measures implies a full 50%
weighting (prior to the application of Committee discretion). There has been sustained and consistent progress made towards our 2016 Transform
targets and Barclays has met all 2014 Transform financial and capital targets. Higher Group and Core adjusted profit before tax were driven by focused
cost saving initiatives. Significant Non-Core run down throughout the year contributed to strengthening of Group capital and leverage ratios. Group
adjusted profit before tax increased 12% to £5,502m. CET1 ratio increased to 10.3% (2013: 9.1%) demonstrating progress towards the 2016
Transform financial target in excess of 11%. The Leverage Ratio increased to 3.7% close to the 2016 Transform target to exceed 4%.
Balanced Scorecard (35% weighting)
Each of the five “Cs” of the Balanced Scorecard was assessed. Barclays has published its 2018 targets on page 11. There has been steady progress
across the Balanced Scorecard towards our 2018 targets. There was however deterioration in the sustained engagement metric and the
Relationship Net Promoter Score. The move in both metrics is predominately due to changes Barclays has undergone during 2014 with the
Strategy Update affecting a structural change in the company. Based on an assessment of performance against 2014 Balanced Scorecard
milestones, the Committee has agreed a 22% outcome out of a maximum of 35%.
Personal objectives (15% weighting)
In summary, Antony Jenkins has shown strong leadership throughout the year and has been fully committed to delivering on the Transform
financial targets and on improving the control environment across the organisation during 2014. Tushar Morzaria had demonstrated a consistent
strive for excellence and challenged the status quo where appropriate to drive results and achieve cost targets. For each of the Directors, the
Committee judged that 11% of a maximum of 15% was appropriate.
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