Barclays 2014 Annual Report Download - page 82

80 I Barclays PLC Annual Report 2014 barclays.com/annualreport
Governance: Remuneration report
Remuneration policy for all employees
Remuneration policy
The Committee formally adopted the current remuneration policy for 2013 as part of the Transform programme. The principles set out in the
policy below underpin 2014 remuneration decisions made by the Committee and throughout Barclays.
The remuneration structure for employees is aligned with that for executive Directors, set out in detail in the Directors’ remuneration policy which
was approved by Shareholders at the 2014 AGM. A full copy of the policy can be found on the Barclays PLC website. An abridged version is at
pages 102 to 110 of this Report.
Barclays’ remuneration decisions:
1. Support the goal of becoming the ‘Go-To’ bank by attracting, retaining and competitively rewarding colleagues with the ability, experience,
skill, values and behaviours to deliver that goal.
2. Will only reward business results when these are achieved in a manner consistent with Barclays’ Values and Behaviours:
Q Respect: We respect and value those we work with, and the contribution that they make
Q Integrity: We act fairly, ethically and openly in all we do
Q Service: We put our clients and customers at the centre of what we do
Q Excellence: We use our energy, skills and resources to deliver the best, sustainable results
Q Stewardship: We are passionate about leaving things better than we found them
3. Protect and promote shareholder interests by incentivising colleagues to deliver sustained performance and create long-term value through
the delivery of Barclays’ goal. Those decisions will reflect that performance for individuals and in aggregate. Barclays will pay competitively for
high performance but will not pay more than the amount appropriate to maximise the long-term value of the bank for its shareholders.
4. Create a direct and recognisable alignment between remuneration and risk exposure, as well as adjusting current and deferred incentives for
current and historic risk, including malus adjustments, as appropriate.
5. Should be as simple and clear for colleagues and stakeholders as possible – as is the process used to determine them.
6. Ensure that the balance between shareholder returns and remuneration is appropriate, clear and supports long-term shareholder interests.
Remuneration and performance
Our remuneration policy means that remuneration decisions for all employees across the whole of Barclays are aligned with and support the
achievement of Barclays’ goal of becoming the ‘Go-To’ bank.
This is achieved by linking remuneration to a broad assessment of performance based on expected standards of delivery and behaviour discussed
with employees at the start of and throughout the performance year. A new approach to performance management was implemented for all
employees in 2014 to ensure alignment of these expectations to Barclays’ strategy. This started with all employees aligning each of their 2014
objectives to the 5Cs of the Balanced Scorecard (Customer & Clients, Colleagues, Citizenship, Conduct and Company) and discussing behaviour
expectations in relation to our Values with their managers. This ensures that clear expectations are set for not only ‘what’ employees are expected
to deliver, but also ‘how’ they are expected to go about it.
Individual performance is then evaluated against both the ‘what’ (performance against objectives) and the ‘how’ (demonstration of our Values
and Behaviours), with ratings agreed for both of these elements and overall performance at year-end. This evaluation takes into account various
factors including:
Q Performance against agreed objectives (both financial and non-financial) and core job responsibilities
Q Adherence to relevant risk policies and procedures and control frameworks
Q Behaviour in line with Barclays’ Values and Behaviours
Q Colleague and stakeholder feedback
Q Input from the Risk and Compliance functions where there are concerns about the behaviour of the individuals concerned or the risk of the
business undertaken.
There is no specific weighting between the financial and non-financial considerations for employees because all of them are important to the
determination of the overall performance assessment.
Linking individual performance assessment and remuneration decisions to both the Balanced Scorecard and our Values and Behaviours in this
way promotes the delivery of sustainable individual and business performance, and establishes clear alignment between remuneration policy and
Barclays’ strategy.
This section sets out Barclays’ remuneration policy for all employees, explaining the purpose and principles underlying
the structure of remuneration packages, and how the policy links remuneration to the achievement of sustained high
performance and long-term value creation.