
	2021	2020 (1)	2019 (1)
Continuing operations	£m	£m	£m
Salaries	2,295	2,494	2,477
Bonus awards	267	232	299
Temporary and contract costs	240	258	401
Social security costs	300	316	296
Pension costs	354	340	301
- defined benefit schemes (see Note 5)	215	215	188
- defined contribution schemes	139	125	113
Other	220	238	202
Staff costs	3,676	3,878	3,976

Premises and equipment (2)	1,133	1,222	1,258
UK bank levy (3)	99	167	134
Depreciation and amortisation (4,5)	923	913	1,218
Other administrative expenses (6)	1,927	1,678	2,694
Administrative expenses	4,082	3,980	5,304
	7,758	7,858	9,280

(1)	Comparative results have been re-presented from those previously published to reclassify certain operations as discontinued operations as described in Note 8.

(2)

2021 includes cost of £33 million including accelerated depreciation of £41 million (2020 - £144 million including £71 million accelerated depreciation; 2019 - £161 million including £40 million accelerated depreciation) in relation to the planned reduction of the property portfolio (2021 – freehold £3 million; leasehold £30 million; 2020 - freehold £1 million; leasehold £143 million; 2019 - freehold £4 million; leasehold £157 million).

(3)	2019 includes a rebate of £31 million relating to prior periods.

(4)	2021 includes a £58 million charge relating to the reduction in property portfolio, leasehold £48 million and freehold £10 million (2020 - £107 million charge, leasehold £86 million and freehold £21 million; 2019 - £287 million charge, leasehold £37 million and freehold £250 million).

(5)	Includes impairment of goodwill of £85 million.

(6)	Includes litigation and conduct costs, net of amounts recovered. Refer to Notes 21 and 27 for further details.

Schedule of share-based compensation


Award plan	Eligible employees	Nature of award	Vesting conditions (1)	Settlement
Sharesave	UK, Channel Islands, Gibraltar, Isle of Man, Poland and India.	Option to buy shares under employee savings plan	Continuing employment or leavers in certain circumstances	2022 to 2026
Deferred performance awards	All	Awards of ordinary shares and conditional shares	Continuing employment or leavers in certain circumstances	2022 to 2028
Long-term incentives (2)	Senior employees	Awards of ordinary shares and conditional shares	Continuing employment or leavers in certain circumstances and/or satisfaction of the pre-vest assessment and underpins	2022 to 2028

(1)	All awards have vesting conditions which may not be met.

(2)	Long-term incentives include buy-out awards offered to compensate certain new hires for the loss of forfeited awards from their previous employment. All awards are granted under the Employee Share Plan.

Schedule of reconciliation of bonus awards


	2021	2020	2019
Reconciliation of bonus awards to income statement charge	£m	£m	£m
Bonus awarded	301	206	307
Less: deferral of charge for amounts awarded for current year	(99)	(77)	(110)
Income statement charge for amounts awarded in current year	202	129	197

Add: current year charge for amounts deferred from prior years	80	114	127
Less: forfeiture of amounts deferred from prior years	(15)	(11)	(25)
Income statement charge for amounts deferred from prior years	65	103	102

Income statement charge for bonus awards (2)	267	232	299

(1)	Non-deferred cash awards are limited to £2,000 for all employees.

(2)	Excludes other performance related compensation.

(3)	Operating profit before tax and bonus expense.

Schedule of share-based compensation


Sharesave	2021		2020		2019
	Average	Shares	Average	Shares	Average	Shares
	exercise price	under option	exercise price	under option	exercise price	under option
	£	(million)	£	(million)	£	(million)
At 1 January	1.64	96	2.01	84	2.18	75
Granted	1.80	24	1.12	35	1.78	25
Exercised	1.76	(10)	1.83	—	2.83	(4)
Cancelled	2.02	(15)	2.20	(23)	2.25	(12)
At 31 December	1.61	95	1.64	96	2.01	84

Operating expenses

Schedule of share-based compensation


Long-term incentives	2021			2020			2019
	Value at	Shares	Options	Value at	Shares	Options	Value at	Shares	Options
	grant	awarded	over shares	grant	awarded	over shares	grant	awarded	over shares
	£m	(million)	(million)	£m	(million)	(million)	£m	(million)	(million)
At 1 January	50	24	—	63	25	—	85	32	2
Granted	6	3	—	14	10	—	15	6	—
Vested/exercised	(12)	(6)	—	(17)	(7)	—	(12)	(4)	—
Lapsed	—	—	—	(10)	(4)	—	(25)	(9)	(2)
At 31 December	44	21	—	50	24	—	63	25	—