Barclays 2009 Annual Report Download - page 10

08 Barclays PLC Annual Report 2009 www.barclays.com/annualreport09
Group Chairman’s statement
continued
Compensation has been the subject of considerable comment over the
last 12 months. We understand public concerns over bank bonuses and are
fully committed to implementing the Financial Stability Board Implementation
Standards endorsed by the G20 and the FSA Remuneration Code. We will
ensure that our remuneration systems do not reward failure but only reward
long-term success and only on a risk adjusted basis. The Board HR and
Remuneration Committee has exercised careful governance over the
process for determining overall levels of
compensation with the objective
of maximising long-term shareholder value by restricting compensation
to the minimum level consistent with retaining high quality employees in
an intensely competitive international marketplace for talent. A full report
is contained in the Remuneration Report on pages 170 to 186.
Looking forward, the competitive and regulatory environment will be
very different from the recent past. Barclays strategy will evolve in response
to these changes but we remain committed to the universal banking model
since we believe that the diversification benefits of this model have
protected shareholders from the worst effects of the crisis over the last two
years. And as the global economy becomes more interlinked, it will continue
to require integrated and international banks that are able to serve the needs
of the increasing number of large multinational companies (and other major
clients, such as sovereign governments themselves) that require a broad
range of services from their banks, including credit provision, payments
capability, access to the capital markets and the ability to manage the
financial risks they face, such as interest rate, foreign exchange rate and
commodity price risk.
This requirement to serve the needs of our customers and clients
highlights the economic and social roles played by banks. The banking
industry, through its core activities of payments, delivering safe storage for
deposits, lending, asset management and investment banking, plays a key
role in the smooth functioning and well being of economies. We exist to
enable our customers to achieve and progress their financial objectives. And
it will be critical to the future growth of the global economy that integrated
banks such as Barclays are able to continue to finance the increase in global
trade that has led to such an increase in living standards in both developed
and developing economies.
At Barclays, we are committed to meeting our responsibilities to
stakeholders. These include customers and clients, shareholders,
employees, government and regulators and society in general. We recognise
in particular that we have a responsibility to:
– Support appropriate risk-taking by customers;
– Treat our customers fairly;
– Invest for the future;
– Act as a responsible global citizen;
– Pay responsibly;
– Manage our affairs prudently and in a way that creates confidence;
– Produce good returns for our shareholders; and
– Pay our fair share of taxes to the revenue authorities.
These have been and will be our guiding lights as we seek to regain the trust
and confidence of stakeholders. And we are under no illusion that this will
take time and that we will be judged by our actions.