Barclays 2007 Annual Report Download - page 230

Notes to the accounts
For the year ended 31st December 2007
228 Barclays PLC Annual Report 2007
43 Events after the balance sheet date
On 3rd March 2008, Barclays entered into an agreement with Petropavlovsk Finance (Limited Liability Society) to acquire 100% of the Russian Bank,
Expobank, for a consideration of approximately $745m (£373m). The transaction is expected to close in summer 2008 after receipt of appropriate
regulatory approvals. Expobank focuses principally on Western Russia, with a substantial presence in Moscow and St Petersburg. Founded in 1994,
it has grown rapidly and comprises a blend of retail and commercial banking, operating 32 branches and dealing with a range of corporate and wholesale
clients. As at 31st December 2007, Expobank had net assets of $186m (£93m).
44 Share-based payments
The Group operates share schemes for employees throughout the world. The main current schemes are:
Sharesave
Eligible employees in the UK, Spain and Ireland may participate in the Barclays Sharesave scheme. Under this scheme, employees may enter into contracts
to save up to £250 per month (Ireland: ¤320, Spain: ¤90) and, at the expiry of a fixed term of three, five or seven years (Spain: three 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 HM Revenue & Customs 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year, which, if kept in trust for five years, can be withdrawn from the plan tax-free.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 normally be held for at least three years. Additional bonus shares are subsequently
awarded to recipients of the provisional allocation and vest upon achieving continued service for three and five years from the date of award. ESAS awards
are also made to eligible employees for recruitment purposes. All awards are 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.
Options granted under the following schemes are over subsidiaries of Barclays PLC:
Barclays Global Investors Equity Ownership Plan (BGI EOP)
The Equity Ownership Plan extends to key 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 not exercisable until vesting, with a third of the options held generally becoming
exercisable at each anniversary of grant. The shareholder has the right to offer to sell the shares to Barclays Bank PLC 355 days following the exercise of
the option. Barclays Bank PLC may accept the offer and purchase the shares at the most recently agreed valuation but is under no obligation to do so.
Options lapse ten years after grant. The most recently agreed valuation was £106.03 at 30th June 2007.
Absa Group Limited Black Economic Empowerment (BEE) Transaction
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. Each redeemable preference share carries the option to acquire one Absa ordinary share. 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 only occur in lots of 100 and within a price range varying from ZAR48 to ZAR69 (£3.40-£4.89) dependent on the
30-day volume weighted trading price on the JSE Limited. Options are redeemed by Absa on the final exercise date.