Barclays 2015 Annual Report Download - page 98

96 I Barclays PLC Annual Report 2015 home.barclays/annualreport
Governance: Remuneration report
Annual report on Directors’ remuneration
The performance measures for the 2015-2017 LTIP awards are as follows:
Performance measure Weighting Threshold Maximum vesting
Net generated equitya30% 7.5% of award vests for Net Generated Equity
of £1,363m
Net Generated Equity of £1,844m
Core return on risk weighted
assets (RoRWA) excluding own
credit
20% 5% of award vests for average annual Core
RoRWA of 1.34%
Average annual Core RoRWA of 1.81%
Non-Core drag on adjusted
return on equity (RoE)
10% 2.5% of award vests for Non-Core drag on
adjusted RoE of –4.02%
Non-Core drag on adjusted RoE of –2.97%
Loan loss rate 10% 2.5% of award vests for average annual loan
loss rate of 70bps
Average annual loan loss rate of 55bps or below
Balanced Scorecard 30% Performance against the Balanced Scorecard is assessed by the Committee to determine the
percentage of the award that may vest between 0% and 30%. Each of the 5Cs in the Balanced
Scorecard has equal weighting. The targets within each of the 5Cs are deemed to be commercially
sensitive. However, retrospective disclosure of the targets and performance against them will be
made in the 2017 Remuneration report subject to commercial sensitivity no longer remaining.
Note
a Net generated equity is a metric which converts changes in the CET1 ratio into an absolute capital equivalent measure. For remuneration purposes, Net generated equity will exclude
inorganic actions such as rights issues, as determined by the Committee.
Straight line vesting applies between the threshold and maximum points in respect of the financial and risk measures. The award is subject to a
discretionary underpin by which the Committee must be satisfied with the underlying financial health of the Group. For Antony Jenkins, the resulting
number of shares will then be pro-rated to his termination date.
Executive Directors: pension (audited)
Jes Staley and Tushar Morzaria receive cash in lieu of pension. The 2015 cash in lieu of pension shown below for Jes Staley is for the period
1 December 2015 to 31 December 2015.
Antony Jenkins left the UK pension scheme in April 2012, and then started receiving cash in lieu of pension. He has benefits in both the final salary
1964 section and in the cash balance Afterwork section. The accrued pension shown below relates to his 1964 section pension only. The other
pension entries relate to his benefits in both sections. Antony Jenkins ceased to be an executive Director on 16 July 2015. The 2015 cash in lieu of
pension shown below is for the period 1 January 2015 to 16 July 2015.
Accrued
pension at
31 December
2 0 15
£000
Increase in
value of
accrued
pension over
year net of
inflation
£000
Normal
retirement
date
Pension value
in 2015 from
DB Scheme
£000
2015
Cash in lieu
of pension
£000
2015
Total
£000
Antony Jenkins 4 0 11 July 2021 0 197 197
Tushar Morzaria – – – 200 200
Jes Staley – – – 33 33
Executive Directors: Statement of implementation of remuneration policy in 2016
The introduction of new deferral and LTIP requirements in the Remuneration part of the PRA Rulebook and EBA Guidelines will require some
structural changes as to how the approved Directors’ remuneration policy will be implemented in 2016. It is therefore our intent to consult with
shareholders over proposed changes once formulated. This section explains how the approved Directors’ remuneration policy would be implemented
in 2016 under the current framework.
Jes Staley Tushar Morzaria Comments
Salary £1,200,000 £800,000 No change from 2015.
RBP £1,150,000 £750,000 Delivered quarterly in shares subject to a holding period with
restrictions lifting over five years. No change from 2015.
Pension 33% of salary 25% of salary Fixed cash allowance in lieu of participation in pension plan.
No change from 2015.
Maximum bonus 80% of fixed pay 80% of fixed pay Variable remuneration for the executive Directors is delivered
through bonus and LTIP, both of which are currently deferred
over three years. Variable remuneration for the 2016
performance year will be delivered in line with the requirements
of the Remuneration part of the PRA Rulebook, including the
vesting requirements. Awards under the LTIP will be delivered in
shares. The performance and holding periods will be determined
before the awards are made in Q1 2017. Vesting will be
dependent on performance over the performance period and
subject to a further holding period after vesting.
Maximum LTIP 120% of fixed pay 120% of fixed pay