Barclays 2008 Annual Report Download - page 175

2
Governance
Barclays PLC Annual Report 2008 173
Fig 2: Total Shareholder Return £
Year ended 31st December
03 04 05 06 07 08
Barclays PLC
FTSE 100 Index
100
100
123 134
166
120
41
118
111
134
154
165
Total Shareholder Return
Figure 2 shows the value, at 31st December 2008, of £100 invested
in Barclays on 31st December 2003 compared with the value of £100
invested in the FTSE 100 Index. The other points plotted are the values
at intervening financial year ends. The FTSE 100 Index is a widely
recognised performance comparison for large UK companies and this
is why it has been chosen as a comparator to illustrate Barclays TSR.
The graph shows that, at the end of 2008, a hypothetical £100
invested in Barclays on 31st December 2003 would have generated
a total loss of £59, compared with a gain of £18 if invested in the
FTSE 100 Index.
iv) Pioneering
– Driving new ideas, especially those that make Barclays profitable
and improve control.
– Improving operational excellence.
– Adding diverse skills to stimulate new perspectives and bold steps.
v) Trusted
– Acting with the highest levels of integrity to retain the trust of
customers, shareholders, other external stakeholders and
colleagues.
– Taking full responsibility for decisions and actions.
– Reflecting the operation of independent, robust and evidence-
based governance and control and complying with relevant legal
and regulatory requirements.
The Committee keeps the remuneration policy and arrangements, as
detailed in this Report, under review to ensure that Barclays programmes
remain competitive and provide appropriate incentive for performance.
Remuneration Policy Governance
To ensure appropriate operation of the remuneration policy, the Committee
has established frameworks for the governance of remuneration in the Global
Retail and Commercial Banking and Investment Banking and Investment
Management businesses and for the Group as a whole. These frameworks
will be reviewed in 2009. The current frameworks set out key financial ratios
achieved by Barclays and its competitors and have been used by the
Committee to inform its decision-making process when approving aggregate
remuneration spend, including bonus and long-term incentive expenditure,
strategic investment for new hires, and the remuneration arrangements of
any employee with annual total remuneration equal to or in excess of
£750,000.
For all individual remuneration decisions made by the Committee,
including those for executive Directors, the Committee reviews each
element of remuneration relative to performance and to the practice of
other comparable organisations. Remuneration is benchmarked against
the markets in which we compete for talent. This includes benchmarking
against other leading international banks and financial services
organisations, and other companies of similar size to Barclays in the
FTSE 100 Index.
Given the materiality of Barclays pension arrangements, the
Committee operates a specific framework for the management of
pensions to ensure proper oversight. The Global Retirement Fund
Governance Framework is operated to ensure best practice in respect
of regulatory compliance, governance, investment and administration.
Details of the pension arrangements in place for executive Directors are
set out on page 178 and for other employees on page 234.
As required by Part 3 of Schedule 7A of the Companies Act 1985,
the Group’s auditors, PricewaterhouseCoopers LLP, have audited the
information contained in Tables 1b, 3, 5, 10, 11, 14, 16, 18, 19, 20, 21,
22 and 23 on pages 176 to 182.
The highest share price during the year was Source: Datastream
£5.06 and the lowest was £1.27.
The share price at the year end was £1.53.