Barclays 2014 Annual Report Download - page 27

barclays.com/annualreport Barclays PLC Annual Report 2014 I 25
Running the company well
Chairman’s governance overview
Our key priority as a Board is clear: build a sustainable
business that generates good returns for our shareholders
over the long-term. Our role is to set Barclays’ strategic
aims; provide the right leadership to achieve those aims;
ensure consistent execution by monitoring performance
and, above all, ensure that risk is managed appropriately
and the business is well-controlled.
The Board sets direction and provides oversight and control, acting as an
independent check and balance to the Executive team, whose responsibility
it is to run the business. This relationship is only effective if it is built on
mutual respect, with a common shared agenda and a shared perspective
on what we are trying to achieve, and we saw that in evidence during 2014.
Setting strategic aims
Our overriding performance objective, which we set in February 2013,
is to deliver a return on equity above the cost of equity on a sustainable
basis. Faced with significant changes in the external environment since
then, an important area of focus for your Board has been how we
achieve that objective. In early 2014, the Executive team, led by Antony
Jenkins, brought proposals to the Board, identifying the significant
issues and the choices available to us. The Board challenged and tested
these proposals and perspectives before concluding on the strategy on
which we are all agreed, to rebalance Barclays and reposition the
business for consistent returns and growth, which was announced on
8 May 2014. As a Board, we are united in our commitment to this plan.
Creating the right culture
Of course, how we do these things is just as important as what we do.
Our goal is to create a Barclays that is doing business in the right way,
exhibiting the right values. The Board has a vital role to play in setting
the tone and the values – creating the culture – that will ultimately
deliver sustainable success. Effective governance is therefore not simply
about having a framework or processes in place: it is about people and
how they interact. Ensuring that we have the right people leading
Barclays and that they are appropriately rewarded and incentivised is
vital. The Board Corporate Governance & Nominations Committee and
Board Remuneration Committee oversee these important areas on
behalf of the Board.
Monitoring performance
We continue to discuss and test each element of our strategy, not least
because of further regulatory change, including Structural Reform, and
the fundamental effect this will have on how we manage our capital,
liquidity and risk. However, having refined our strategic aims, the
Board’s focus is now on execution and supporting the Executive team
Becoming ‘Go-To’
Your Board has set a clear priority
Building a business that generates strong, sustainable returns
The Board sets direction and provides oversight and control, acting as an independent check
and balance to the Executive team, whose responsibility it is to run the business.
Set Barclays’ strategic
aims
Ensure consistent
execution by
monitoring
performance
Ensure that risk is
managed appropriately
and the business is
well-controlled
Provide the right
leadership to achieve
those aims, creating
the culture that will
ultimately deliver
sustainable success
Our role is to:
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