Barclays 2008 Annual Report Download - page 186

Corporate governance
Remuneration Report
184 Barclays PLC Annual Report 2008 |Find out more at www.barclays.com/annualreport08
Share and Long Term Incentive Plans (continued)
Table 24: Plans under which awards made in 2008 (continued)
Executive
Directors
Plan name Eligible? Description
Sharesave Yes – Sharesave is a share option plan under which all eligible employees in the UK, Ireland and Spain (including executive
Directors) are invited to participate. It is HMRC approved in the UK and approved by the Revenue Commissioners in Ireland.
– Participants are granted options over Barclays shares which may be at a discount to the market value
at the date of award (currently 20%).
– At the expiry of a fixed term (three, five or seven years) participants may use savings to acquire the shares by exercising
their option within 6 months of the date of vesting. Participants may save up to £250 per month (¤500 in Ireland,
¤135 in Spain) for this purpose.
– On cessation of employment eligible leavers (as defined) may exercise their option to acquire shares
to the extent of their savings for a period of 6 months.
– On a change of control, participants may be able to exercise their options to acquire shares to the extent
of their savings for a period of 6 months (or a shorter period in certain circumstances).
– The plan was approved for a ten year period by shareholders in April 2000.
Sharepurchase Yes – Sharepurchase is an HMRC approved share incentive plan under which all employees in the UK
(including executive Directors) are invited to participate.
– Participants may purchase up to £1,500 shares each tax year. To encourage employee share ownership, Barclays
matches the first £600 of shares purchased by participants on a one-for-one basis. Dividends are also earned in
the form of additional shares.
– Purchased shares may be withdrawn from the plan any time. Matching and dividend shares must
be held in trust for three years before release, but may be kept in trust for five years.
– On cessation of employment participants must withdraw all shares and depending on the reason for and timing of
cessation, the matching shares may be forfeited.
– On a change of control, participants are able to instruct the Sharepurchase trustee how to act or vote on their behalf.
– The plan was approved for a ten year period by shareholders in April 2000.
Table 25: New Plans under which awards are to be made 2009
Executive
Directors
Plan name Eligible? Description
BGI Equity No – The BGI Equity Participation Plan is a share plan under which awards linked to the value of BGI shares may be made
Participation Plan to selected BGI employees (excluding executive Directors) in the form of either stock appreciation rights settled
in shares or restricted share awards.
– Awards normally vest in three equal tranches following the first, second and third anniversary of grant provided there
has been no significant deterioration in the performance of Barclays, with delivery in Barclays shares.
– On cessation of employment awards normally vest for eligible leavers (as defined) provided there has
been no significant deterioration in the performance of Barclays; for other leavers, awards will normally lapse.
– On a change of control awards may vest provided there has been no significant deterioration in the performance
of Barclays.
Long Term No – The LTCP is a new forward looking plan introduced initially for 2009, under which conditional awards of cash are
Cash Plan (LTCP) made to eligible employees, (excluding executive Directors).
– Awards are released in portions over a period of time (two years for 2009 awards), subject to continued employment.
At the time of the final release, for 2009 awards, a service credit (10%of the initial value of the award) is added.
– Participants must normally be in employment at the time of release in order to receive each portion of the payment.
– Participants who leave employment before the release date of any portion of the award will normally
forfeit any outstanding amounts. For categories of eligible leavers an award will vest, pro rated for time in service.
– On a change of control awards may vest at the discretion of the Committee.