Barclays 2005 Annual Report Download - page 213

53 Share-based payments
The Group operates share schemes for employees throughout the world. The main current schemes are:
Sharesave
Eligible employees in the UK may participate in the Barclays Sharesave Scheme. Under this Scheme, employees may enter into contracts to save up
to £250 per month and, at the expiry of a fixed term of three, five or seven years, have the option to use these savings to acquire shares in the
Company at a discount, calculated in accordance with the rules of the Scheme. The discount is currently 20% of the market price at the date the
options are granted. Participants in the Scheme have six months from the date of vest in which the option can be exercised.
Sharepurchase
Sharepurchase was introduced in January 2002. It is an Inland Revenue approved all-employee share plan. The plan is open to all eligible UK
employees, including executive Directors. Under the plan, participants are able to purchase up to £1,500 worth of Barclays PLC ordinary shares per
tax year, which, if kept in trust for five years, can be withdrawn from the plan tax-free. Matching shares were introduced to the Scheme during 2005
where the purchase of Barclays shares by the participant are matched equally by the Company up to a value of £600 per tax year. Any shares in the
plan will earn dividends in the form of additional shares, which must normally be held by the trustee for three years before being eligible for release.
Executive Share Award Scheme (ESAS)
For certain employees of the Group an element of their annual bonus is in the form of a deferred award of a provisional allocation of Barclays PLC
shares under ESAS. The total value of the bonus made to the employee of which ESAS is an element is dependent upon the business unit, Group
and individual employee performance. The ESAS element of the annual bonus must be held for at least three years and is subject to potential forfeit
if the individual resigns and commences work with a competitor business.
Performance Share Plan (PSP)
The Performance Share Plan (PSP) was approved by shareholders at the 2005 AGM to replace the ISOP scheme. Performance shares are ‘free’
Barclays shares for which no exercise price is payable and which qualify for dividends. Performance share awards are communicated to participants
as an initial allocation. Barclays performance over a three-year period determines the final number of shares that may be released to participants.
Incentive Share Option Plan (ISOP)
The ISOP is open by invitation to the employees and Directors of Barclays PLC. Options are granted at the market price at the date of grant
calculated in accordance with the rules of the Plan, and are normally exercisable between three and ten years from that date. The final number
of shares over which the option may be exercised is determined by reference to set performance criteria. The number of shares under option
represents the maximum possible number that may be exercised.
Barclays Global Investors Equity Ownership Plan (BGI EOP)
The BGI Equity Ownership Plan is extended to senior employees of BGI. The exercise price of the options is determined by the Remuneration
Committee of Barclays PLC based on the fair value of BGI as determined by an independent appraiser. The options are granted over shares in
Barclays Global Investors UK Holdings Limited, a subsidiary of Barclays Bank PLC. Options are normally not exercisable until vesting, with a third of
the options held becoming exercisable at each anniversary of grant. Options lapse ten years after grant.
Absa Group Limited Share Incentive Trust (AGLSIT)
In terms of the rules of Absa Group Limited Share Incentive Trust the maximum number of shares which may be issued or transferred and/or in
respect of which options may be granted to the participants shall be limited to shares representing 10% of the total number of issued shares.
Options are allocated to Absa employees according to the normal Human Resources talent management process. The options issued up to August
2005 had no performance criteria linked to them and vested in equal tranches after three, four and five years respectively. No dividends accrue to
the option holder over the period. The options expire after a period of ten years from the issuing date. Options issued since August 2005 have
vesting performance criteria associated with them, which require headline earnings per share to exceed an agreed benchmark over a three-year
period from July 2005 for the options to vest.
Absa Group Limited Share Ownership Trust (AGLSOT)
AGLSOT enabled all Absa employees to participate in a one-off offer to purchase 200 redeemable cumulative option-holding preference shares.
Options vest after three years and lapse after five years from the date of issue. Exercise may occur in lots of 100 only and within a price range varying
from R48 to R69 (£4.41-£6.35) dependent on the 30-day volume weighted trading price on the JSE Limited. Options are redeemed by Absa on the
final exercise date.
Absa Group Limited Black Economic Empowerment (BEE) Scheme
On 25th June 2004, Absa shareholders approved the allocation of 73,152,300, redeemable cumulative option-holding Absa preference shares to
Batho Bonke Capital Limited. The shares carry the same rights as ordinary shares including voting rights, and receive dividends which are payable
semi-annually. Options vest after three years and lapse after five years from the date of issue. Exercise may occur in lots of 100 only and within a
price range varying from R48 to R69 (£4.41-£6.35) dependent on the 30-day volume weighted trading price on the JSE Limited. Options are
redeemed by Absa on the final exercise date.
Barclays PLC
Annual Report 2005 211
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