Barclays Africa execs score R156m

The top brass get this in restricted share awards to ‘retain critical skills’, according to a report.

Barclays Africa Group executives have been granted R156 million in restricted share awards (RSAs) “to retain skills critical during the separation [from Barclays Plc] and beyond”, according to its 2017 integrated report.

RSAs were awarded to 53 “key employees …including executive directors and prescribed officers” on October 1, 2017, with a two-year performance period. This follows the first tranche of RSAs related to the sell-down in 2016. These, granted to 74 key employees, are worth R191 million and run until September 30, 2018.

Group CEO Maria Ramos, SA Banking Deputy CEO David Hodnett and financial director Jason Quinn received the same award of RSAs under this plan as in 2016, worth R8 million, R7 million and R3 million, respectively. Africa Banking Deputy CEO Peter Matlare didn’t receive any restricted shares in 2016 or 2017. Prescribed officer Nomkhita Nqweni, CEO: Wealth, Investment Management and Insurance, received RSAs worth R3 million (same as 2016).

Excluding the executive directors and prescribed officer above, the mean value of the RSAs granted in 2017 to the other “49 key employees” was R2.755 million. These aren’t the only incentives. The group paid R184 million in bonuses “related to the … sell-down” during 2017 (versus the R82 million separate bonus pool related to the separation in 2016).

Barclays Africa’s Remuneration Report says: “The separation bonus pool included additional highly skilled resources specifically hired for the project, particularly in IT. Three hundred and thirty-four employees were dedicated full-time to the separation.”

The total incentives in 2017 were R2.798 billion, of which R2.322 billion was the annual bonus pool. Of the 40 026 permanent employees, 37 358 received a bonus. Executives were also granted long-term incentive plan awards worth over R90 million measured over a three-year period. Ramos was granted R24 million (159% of her fixed remuneration) under this plan, Hodnett R21 million (175% of fixed pay), Matlare R19.5 million (195% of fixed pay), Quinn R14 million (264% of fixed pay) and Nqweni R14 million (187% of fixed pay).

In 2017, shareholders raised remuneration concerns, including that “success in separating from Barclays Plc should be a factor in the Long-Term Incentive Plan conditions”. The group responded: “The 2017 Long-Term Incentive Plan metrics incorporate a strategic measure which includes progress against organisational objectives such as the separation.”

A total of 24.25% of Barclays Africa shareholders voted against the non-binding advisory resolution on remuneration policy at the 2017 AGM. In 2016, there were 18.63% votes against. The Remuneration Report says: “We seek to improve this result and have made our comprehensive disclosure more transparent for … engagement with shareholders.”

It’s developing a new remuneration policy: “The reward policy is informed by issues raised by institutional investors and a changing regulatory landscape. We will continue engagement with shareholders as this progresses.”

Hilton Tarrant works at immedia