Barclays 2010 Annual Report Download - page 173

Table 4: Key elements of Barclays remuneration arrangements
Element Strategic purpose Programme summary
Base salary To attract, retain and incentivise talent
in a competitive market
– Reviewed annually
– Salaries for all roles are determined with reference to relevant market
practice
– All employees’ salaries are benchmarked against the appropriate
market
Annual performance
incentive
To incentivise the delivery of annual
goals at Group, business, team and
individual levels
– Annual performance incentives are awarded on a discretionary basis,
based on Group, business, team and individual performance
– The aggregate level of annual performance incentives is determined
by reference to Group and business unit metrics. These include a
range of risk-adjusted financial metrics including profit before tax
(PBT) and return on risk weighted assets (RoRWA)
– Individual annual performance incentives are strongly differentiated
based on individual performance (both financial and non-financial).
Adherence to applicable risk and control frameworks is part of
performance assessment
– The structure of individual annual performance incentives may vary
based on amount, and may include cash and deferred incentive
awards. Details on deferred incentive awards are set out below
– 50% of non-deferred annual performance incentives for 2010 for
executive Directors (100% of non-deferred for Mr Diamond) and other
Code Staff is in the form of Barclays shares subject to a six month
holding period
Deferred incentive
awards and long term
incentive awards
Deferred incentive awards are designed
to align performance with shareholder
value and increase retention for senior
employees
Long term incentive awards reward
execution against the Group strategy
and the creation of sustained growth
in shareholder value. The awards are
designed to align the most senior
employees' goals with the long term
success of Barclays
– Employees who are awarded an annual performance incentive over
a threshold level (as determined each year by the Committee) receive
part of the award as a deferred incentive award dependant on future
service (including awards in Barclays shares)
– 60% of 2010 annual performance incentives for executive Directors
is deferred (72% for Mr Diamond), and for other Code Staff 60% is
deferred (40% for annual performance incentives of no more than
£500,000). For other employees a graduated system is operated so
that those who receive higher value annual performance incentives
receive more of the award as a deferred incentive award
– The most senior employees in Barclays may also receive long term
incentive awards. Long term incentive awards are subject to risk-
adjusted performance conditions, normally measured over a three year
performance period
– The vesting of long term incentive awards is subject to the discretion
of the Committee to ensure that awards only vest for appropriate
performance. Delivery of vested long term incentive awards includes
awards in Barclays shares
– Vesting of both deferred incentive awards and long term incentive
awards is subject to malus and prudent financial control provisions
in accordance with the FSA Code
– Barclays operates a number of deferred incentive award plans and long
term incentive plans. Details of the principal plans under which awards
were made in 2010 are included in Table 24 and new plans proposed
for 2011 in Table 25
– Deferred incentive awards for 2010 for executive Directors, other Code
Staff and other senior executives will include awards in the form of
contingent capital awards, which are subject to a vesting condition
that Barclays Group Core Tier 1 capital ratio is at least 7% on the
vesting date
Retirement benefits
(or cash allowance)
To provide a market competitive
post-retirement benefit
– Barclays provides retirement benefit arrangements to employees
across the Group, with appropriate consideration of market practice
and geographical differences
Other benefits To provide market competitive benefits – Benefits vary by role and may include private medical insurance, life
and disability cover and car allowance, with appropriate consideration
of market practice and geographical differences
Employees’ annual remuneration
The Remuneration Policy applies the same overarching principles and
practices to all employees, including executive Directors and other Code
Staff, though the exact structure and quantum of individual packages
varies by business, geography and role.
Table 4 summarises the key elements of Barclays remuneration
arrangements.
Barclays PLC Annual Report 2010 www.barclays.com/annualreport10 171
Strategy Performance Financial statements Shareholder informationRisk management and governanceAbout Barclays