Barclays 2007 Annual Report Download - page 228

Notes to the accounts
For the year ended 31st December 2007
226 Barclays PLC Annual Report 2007
42 Related party transactions and Directors’ remuneration (continued)
Key Management Personnel
The Group’s Key Management Personnel, and persons connected with them, are also considered to be related parties for disclosure purposes.
Key Management Personnel are defined as those persons having authority and responsibility for planning, directing and controlling the activities of
Barclays PLC (directly or indirectly) and comprise the Directors of Barclays PLC and the Officers of the Group, certain direct reports of the Group Chief
Executive and the heads of major business units.
In the ordinary course of business, the Bank makes loans to companies where a Director or other member of Key Management Personnel (or any
connected person) is also a Director or other member of Key Management Personnel (or any connected person) of Barclays. These loans are made on
substantially the same criteria and terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other
persons and did not involve more than the normal risk of collectability or present other unfavourable features.
There were no material related party transactions with companies where a Director or other member of Key Management Personnel (or any connected
person) is also a Director or other member of Key Management Personnel (or any connected person) of Barclays.
The Group provides banking services to Directors and other Key Management Personnel and persons connected to them. Transactions during the year
and the balances outstanding at 31st December 2007 were as follows:
Directors, other Key Management
Personnel and connected persons
2007 2006 2005
£m £m £m
Loans outstanding at 1st January 7.8 7.4 7.8
Loans issued during the year 2.7 2.7 3.4
Loan repayments during the year (3.2) (2.3) (3.2)
Loans outstanding at 31st December 7.3 7.8 8.0
Interest income earned 0.4 0.3 0.4
No allowances for impairment were recognised in respect of loans to Directors or other members of Key Management Personnel (or any connected
person) in 2007, 2006 or 2005.
2007 2006 2005
£m £m £m
Deposits outstanding at 1st January 15.0 4.7 2.5
Deposits received during the year 114.4 105.2 20.4
Deposits repaid during the year (115.0) (94.8) (18.2)
Deposits outstanding at 31st December 14.4 15.1 4.7
Interest expense on deposits 0.6 0.2 0.1
Of the loans outstanding above, £nil (2006: £nil, 2005: £0.7m) relates to Directors and other Key Management Personnel (and persons connected to
them) that left the Group during the year. Of the deposits outstanding above, £2.8m (2006: £0.1m, 2005: £nil) related to Directors and other Key
Management Personnel (and persons connected to them) that left the Group during the year.
All loans are provided on normal commercial terms to Directors and other Key Management Personnel (and persons connected to them), with the
exception of £1,540 of loans which are provided to non-Director members of Key Management Personnel on staff preferential interest rates (5%) and
£665 of loans which are provided on an interest free basis.
The loans of £1,540 provided at staff preferential rates of interest reflects the amortized principal amount of a home mortgage loan that was provided
by Barclays to a non-Director member of key management personnel. The home mortgage loan was granted at a time when Barclays had in place a
corporate policy of providing home mortgage loans at preferential rates of interest to all staff members. This policy has since been discontinued by
Barclays. These home mortgage loans were made on substantially the same terms, including interest rates and collateral, to all staff members, who
applied for such loans. The loans of £665 provided on an interest free basis relate to the granting of loans to one non-Director member of Barclays
key management to purchase commuter rail tickets. The commuter rail ticket loans are still provided to all Barclays staff members upon request on
the same terms.