Barclays 2007 Annual Report Download - page 146

Corporate governance
Remuneration report
144 Barclays PLC Annual Report 2007
Statement from the Chairman of the Board HR and
Remuneration Committee (the Committee)
The Committee provides governance and strategic oversight of
remuneration, Barclays Human Resource activities and senior
management development. The Committee’s terms of reference are
available in the Corporate Governance section of the Barclays Investor
Relations website (www.aboutbarclays.com).
The Committee meets a minimum of four times a year. Marcus Agius
became a member of the Committee on 1st January 2007. Marcus Agius
was considered independent (for the purposes of the Combined Code)
on his appointment as Chairman of the Board. All other Committee
members are independent non-executive Directors.
The Committee’s objective in relation to remuneration is to ensure that it
incentivises excellence in business and personal performance and enables
the Group to attract and retain employees of ability and experience.
The Committee aims to achieve this by:
– ensuring clear and quantified individual and Group performance goals
are in place supported by rigorous performance appraisal systems;
– creating externally benchmarked remuneration frameworks for each
major business that provide an evidence based approach to decisions;
– reviewing past remuneration decisions against objectives; and
– approving the specific remuneration packages of executive Directors
and other senior executives.
The Committee’s work is supported by independent professional advice
from Kepler Associates, who were re-appointed in 2007, and Towers Perrin
MGMC who were appointed in 2007.
In relation to HR and senior management development, the Committee’s
objective is to ensure that the Group’s people resources are managed to
maximise business performance, support the long-term success and
growth of the business and protect the welfare of all employees.
The Committee aims to achieve this by:
– ensuring there are appropriate succession and talent management
plans in place;
– providing oversight of Group level policy on HR matters including those
related to the mobility of employees within the Group; and
– monitoring health and safety and equality and diversity issues across
the Group.
Barclays employee remuneration is performance based. Important context
to this report and the disclosures that follow is provided below:
– Group profit before tax was £7.1bn, broadly in line with the prior year;
– Group profit before business disposals increased by 3%; and
– careful management of performance related remuneration has resulted
in a reduction in key remuneration ratios relative to 2006, including the
absorption of 2007 headcount investment.
The Committee takes seriously its commitment to clear and comprehensive
disclosure. This report details the remuneration of the individual Directors
who served Barclays in 2007. Barclays Remuneration Policy remains
unchanged, including the commitment to transparency and to policies
and programmes that serve well the interests of shareholders.
The Committee unanimously recommends that you vote to approve the
report at the 2008 AGM.
Signed on behalf of the Board
Sir Richard Broadbent
Chairman, Board HR and Remuneration Committee
7th March 2008