Barclays 2015 Annual Report Download - page 87

home.barclays/annualreport Barclays PLC Annual Report 2015 I 85
At a Glance – Performance and pay
Governance: Remuneration report
How did we perform and pay in 2015?
The Committee’s 2015 pay decisions took full consideration of financial and non-financial performance. Adjusted profit before tax decreased between
2014 and 2015 by 2%, while the absolute reduction in the Group incentive pool was 10%.
Since 2010 the Group incentive pool has declined steadily, from £3,484m in 2010 to £1,669m in 2015 – a decrease of more than 50% over five years. Over
the same period, Group adjusted profit before tax is down 4%.
£5,403m
£5,081ma
£7,599m
£5,481m
£5,641m
2015
2013
2012
2011
2010
Adjusted profit before tax
£5,502m
2014 £ 1 ,860m
£ 2 ,3 7 8 m
£2,168m
£2,578m
£3,484m
£ 1 ,669m
2 0 1 5
2 0 1 3
2 0 1 2
2 0 1 1
2 0 1 0
2 0 1 4
Note:
a 2013 adjusted profit before tax has been revised to account for the reclassification as an adjusting item of £173m of charges, relating to a US residential mortgage-related business
settlement with the Federal Housing Finance Agency.
How much were executive Directors paid in 2015?
All of the Committee’s 2015 decisions in relation to executive Directors’ remuneration were made within the parameters of the Directors’
remuneration policy which was approved at the 2014 AGM.
Antony Jenkinsa
£000
Tushar Morzaria
£000
Jes Staleyb
£000
2015 2014 2015 2 014 2015
Fixed Pay
Salary 598 1,100 800 800 100
Role Based Pay (RBP) 516 950 750 750 96
Benefits 89 100 82 95 48
Pension 197 363 200 200 33
Variable pay
Annual Bonusc505 1,100 701 900 –
LTIPd1,494 1,854 – – –
Total pay 3,399 5,467 2,533 2,745 277
Notes
a The 2015 figures for Antony Jenkins relate to the period to 16 July 2015 when he ceased to be a Director, save in the case of the LTIP which relates to the whole period pursuant to the
LTIP rules. In accordance with his contractual entitlements, Antony Jenkins will receive salary, RBP, benefits and pension, in instalments, until 7 July 2016 subject to mitigation. Full
details of his leaving arrangements can be found on page 101.
b The 2015 figures for Jes Staley relate to the period from 1 December 2015 when he joined the Board as Group Chief Executive. On joining Barclays, Jes Staley was granted a share
award of 896,450 Barclays shares to compensate him for an unvested share award granted to him by JP Morgan. The award will be delivered on 14 March 2016 in line with the
vesting date of the original JP Morgan award.
c 2015 bonus awards reflect the formulaic outcome of 2015 performance against the financial measures and the Committee’s assessment of progress towards the Balanced Scorecard
targets. These resulted in a total of 22.1% (out of 50% maximum) and 15% (out of 35%) of the maximum bonus being payable respectively. Personal objectives were assessed by
the Committee on an individual basis.
d Over the 2013-2015 LTIP performance period, a return on risk weighted assets (RoRWA) of 0.21% and a loan loss rate (LLR) of 53bps resulted in nil (out of 50%) outcome for RoRWA and 30%
(out of 30%) for LLR. The Balanced Scorecard assessment was 9% (out of 20%). Therefore 39% of the maximum number of shares will be considered for release in March 2016, subject to an
additional two year holding period.
How will executive Directors’ pay be structured?
2016 Fixed pay
Salary
£000
RBP
£000
Pension
£000
Jes Staley 1,200 1,150 396
Tushar Morzaria 800 750 200
Salary, RBP, pension and benefits are unchanged from 2015.
Variable pay
2016 Annual Bonus
Maximum 80% of fixed pay
2016 performance measures and weighting:
Financial
Adjusted profit before tax 20%
CET1 ratio 20%
Adjusted costs 10%
50%
Balanced Scorecard 35%
Personal objectives 15%
2016-2018 Long term incentive plan
Maximum 120% of fixed pay
2016-2018 cycle performance measures and weighting:
Financial
Adjusted return on tangible equity (subject
to CET1 ratio underpin) 25%
CET1 ratio 25%
Cost:income ratio 20%
70%
Balanced Scorecard 15%
Risk Scorecard (new Risk measure which will
focus on Barclays’ management of principal
risks, including Conduct Risk) 15%
Tushar Morzaria is the only participant in the 2016-2018 LTIP cycle.
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