Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 199 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) This year’s incentive pool reflects all the The Committee considered this range of Group income elements set out at the start of this complex factors and concluded that this statement. The Committee wanted to year’s incentive funding achieves the right £24,956m recognise the strong performance across balance. A significant downward our three operating businesses, and in adjustment of c.£500m to reflect risk and 2021: £21,940m particular that of our Global Markets control issues, including the Over- Group profit before tax business. As well as good operating issuance of Securities in the US and the (before impairment) performance and delivery against our monetary penalties imposed by the SEC targets in 2022, colleagues have adapted and CFTC for the use of unauthorised to the rapidly changing external business communications channels, is £8,232m environment to support clients and balanced against the strong performance a 2021: £7,541m customers in an extraordinary year. in most parts of the Group during the year, Whether it was CIB support for clients in which the Committee believes it is right to Group profit before tax the immediate aftermath of the Ukraine recognise. We believe that this level of invasion or during the pension fund liquidity incentive funding is appropriate given £7,012m issue in the early autumn, or retail and delivery against our targets and that it is a small business customers requiring urgent consistent with our philosophy of 2021: £8,194m assistance to manage their daily expenses, rewarding sustainable performance, which Group RoTE colleagues responded with dedication, in turn supports our long-term strategy to pace and professionalism. deliver attractive returns to shareholders. Set against those positive factors, the As always, a significant portion of the pool 10.4% Committee was mindful of the is delivered in shares, most of which will be a 2021: 13.1% unsatisfactory impact of litigation and deferred over a number of years, ensuring conduct issues, including the Over- further alignment with shareholders. Cost: income ratio issuance of Securities in the US, on both Those deferrals are subject to malus our financial performance and our conditions. For Material Risk Takers, 67% reputation. Our incentive funding including the Executive Directors, deferrals a and the upfront elements of incentive incorporates a significant reduction to 2021: 67% reflect the impact of risk and control awards are also subject to clawback CET1 ratio issues, as set out later in this statement. conditions, which may apply in a broad set of circumstances including individual Taking all of this into account, the misbehaviour or material failures of risk Committee has approved a Group 13.9% management. incentive pool of £1,790m (2021: a 2021: 15.1% £1,945m). This level of incentive pool Executive Director remuneration funding has enabled us to recognise the Group compensation to income ratio Remuneration arrangements in respect strong performance that has been of the Group Finance Director achieved and to reward the teams and succession 33.5% individuals responsible for that On 22 February 2022, Tushar Morzaria performance. It has also allowed us to 2021: 34.7% informed the Board of his intention to continue to manage the challenges of the retire from the Board and as Group Group incentive pool competitive global market, to attract and Finance Director, and the Board agreed retain the talent required to deliver against that would take effect on 22 April 2022. our objectives. We fully recognised the £1,790m Due to the timing, the remuneration importance of maintaining cost discipline, arrangements in connection with his 2021: £1,945m not paying more than is necessary, and retirement from the Board and those for ensuring the cost of litigation and conduct his successor, Anna Cross, were not issues has a clear impact on pay reflected in last year’s Remuneration outcomes. Furthermore, changes in report but rather were set out in a separate foreign exchange rates mean the cost of announcement to the market on 23 paying bonuses outside the UK has February 2022. increased year-on-year so in practice the incentive pool is down more than it appears at the headline level. Note a 2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See Impact of the Over-issuance of Securities on page 356 and Restatement of financial statements (Note 1a) on page 428 for further details.