Barclays 2006 Annual Report Download - page 136

Barclays PLC
Annual Report 2006
132
Non-executive Directors
The Board determines the fees of non-executive Directors and the fees
are reviewed annually. The fee structure as at 31st December 2006 is
shown below.
Base fee £65,000
Plus:
Chairman of Board Audit Committee £50,000
Chairman of the Board HR and Remuneration Committee £40,000
Chairman of Board Risk Committee £30,000
Members of the Board Audit Committee £20,000
Members of the following Board Committees:
Risk, HR and Remuneration and
Corporate Governance and Nominations £15,000
As Deputy Chairman, Sir Nigel Rudd receives £200,000. He did not
receive an additional fee for chairing the Board HR and Remuneration
Committee in 2006. Similarly, as Chairman, Matthew Barrett received
a salary of £650,000, without any additional fee for chairing the Board
Corporate Governance and Nominations Committee. Sir Richard
Broadbent receives an additional £30,000 in respect of his role as Senior
Independent Director. Until his appointment as Chairman became
effective, Marcus Agius received the base fee of £65,000 (pro rata) as
a non-executive Director.
The Board’s policy is that fees should reflect individual responsibilities
and membership of Board Committees. Barclays encourages its non-
executive Directors to build up a holding in Barclays shares. £20,000
of each Director’s base fee of £65,000 is used to buy Barclays shares.
These shares, together with reinvested dividends, are retained on behalf
of the non-executive Directors until they retire from the Board. They are
included in the table of Directors’ interests in Barclays shares on page
140. Non-executive Directors do not receive awards in share plans for
employees, nor do they accrue pension benefits from Barclays for their
non-executive services.
Non-executive Directors do not have service contracts but each has
a letter of appointment. For each non-executive Director who served
during 2006, the effective date of their appointment, notice period and
the Group’s liability in the event of early termination are shown in the
following table.
Effective Group
date of liability in the
Non-executive letter of Notice event of early
Directors(a) appointment period termination
Sir Richard Broadbent 1st Sep 2003 6 months 6 months’
fees
Leigh Clifford 1st Oct 2004 " "
Dr Danie Cronjé 1st Sep 2005 " "
Fulvio Conti 1st Apr 2006 " "
Professor Dame
Sandra Dawson 1st Mar 2003 " "
Sir Andrew Likierman 1st Sep 2004 " "
Sir Nigel Rudd 1st Feb 1996 " "
Stephen Russell 25th Oct 2000 " "
Sir John Sunderland 1st Jun 2005 " "
Former Directors
Sir David Arculus 1st Feb 1997 – –
Robert Steel 1st Jun 2005 – –
Each appointment is for an initial six-year term, renewable for a single
term of three years thereafter, with the exception of Sir Nigel Rudd,
whose appointment as Deputy Chairman is reviewed annually.
Details of non-executive Directors standing for re-election at the
2007 AGM are set out on page 116.
Future Policy
The Committee will keep the existing remuneration arrangements,
as detailed in this Report, under review during 2007 and ensure that
Barclays programmes remain competitive and provide appropriate
incentive for performance. As usual, there will be individual reviews
of base salary, annual bonus (including ESAS) and awards under the
long-term incentive plans.
Audited Information
As required by Part 3 of Schedule 7A of the Companies Act 1985, the
Group’s auditors, PricewaterhouseCoopers LLP, have audited the
information contained on pages 133 to 139.
Corporate governance
Remuneration report
Note
(a) Marcus Agius was a non-executive Director during 2006 and became Chairman on 1st January 2007. Details of his service contract are set out on page 128.