Barclays 2009 Annual Report Download - page 176

174 Barclays PLC Annual Report 2009 www.barclays.com/annualreport09
Corporate governance
Remuneration report
continued
Executive Directors’ remuneration
Table 1a explains the purpose of each element of remuneration and
Table 1b shows executive Directors’ remuneration in respect of 2009
and 2008.
Base salaries
Table 2 shows the annual base salaries for the current executive Directors.
Table 2: Base salary Base salary at Base salary at Date of
31st December 2009 1st April 2010 previous
£000 £000 increase
Executive Directors
John Varley 1,100 1,100 1st April 2008
Robert E Diamond Jr 250 250 1st March 1999
Chris Lucas 650 800 1st April 2008
Robert E Diamond Jr has, since 1st January 2009, received his base salary in US dollars converted
from sterling into US dollars using an average sterling/US dollar exchange rate for 2008 of 1.86.
In respect of Chris Lucas, having regard to the levels of salary and total
compensation in comparable organisations, the Committee approved the
increase to base salary set out above, effective from 1st April 2010.
Annual cash bonus and deferred share awards
The maximum bonus opportunity for executive Directors is tailored to the
relevant market; this is typically 250% of base salary. The annual bonus
award is made by reference to a qualitative and quantitative assessment of
performance with the latter assessment comprising the majority. For 2009,
more emphasis was placed on non-financial measures as well as risk
considerations.
ESAS is a deferred share award plan operated in conjunction with various
Group bonus plans for executive Directors and certain other employees,
subject to trustee discretion. For 2009, the use of ESAS was significantly
scaled back as the new Share Value Plan and Cash Value Plan are being
operated for deferrals across the Group. The future use of ESAS is under
review. Further detail of these plans is included on pages 183 to 185.
The Board, through the Committee, formed the view that annual bonus
awards for John Varley and Robert E Diamond Jr were merited based on both
Group and personal performance. However, out of consideration of the
continued impact of the economic downturn on many clients, customers and
shareholders, combined with the fact that banks and bankers’ pay remain
matters of intense public interest and concern, both advised the Board that
they wish to decline any such awards for the second successive year.
For Chris Lucas, a recommendation will be made to the ESAS trustee that
Table 1a: Executive Directors’ annual remuneration When normally
received/
Element Purpose Delivery Programme summary awarded
Base salary To reflect the market value of – Cash – Reviewed annually, with any Paid in year
the individual and their role – Monthly increases typically effective
– Pensionable on 1st April
Annual To incentivise the delivery – A proportion of annual – Based on annual performance Normally paid
performance of annual goals at the performance bonus paid in cash of the Group as a whole, in the following
bonus (cash) Group, business division – Non-pensionable business unit performance financial year
and individual levels where relevant and individual
performance
Total cash Sub-total of the above
Deferred share award To align annual – A proportion of annual – Discretionary award of shares Normally
(ESAS) performance with performance bonus to be deferred for three to five awarded in
shareholder value and recommended as a deferred years. No performance condition on the following
increase retention share award under ESAS release, as a deferred share award financial year
– Non-pensionable – 20% bonus shares releasable
after three years, a further 10%
after five years
– Dividends normally accumulated
during deferral period
Long-term incentive To reward the creation – Award of shares that vests – Discretionary awards Normally
award 2010-2012 of sustained growth in after three years, subject to – Participation reviewed annually awarded in
(PSP) shareholder value performance conditions – Barclays performance over three the following
– Non-pensionable years determines the performance financial year
shares eligible for release to
each individual
– Dividends normally accumulated
during deferral period
Pension To provide a market competitive – Deferred cash or cash allowance – Non-contributory, defined Paid or accrued
(or cash allowance) post-retirement benefit – Monthly benefit scheme and/or defined during year
contribution scheme, or cash
allowance in lieu of pension
contributions
Other benefits To provide market competitive – Benefit in kind, or cash allowance – Benefits include private medical Received
benefits – Non-pensionable insurance, life and disability cover, during year
accommodation overseas when
required for business purposes, use
of company-owned vehicle or cash
equivalent and tax advice
Sub-total in accordance
with Schedule 8 of the
Large and Medium-sized
Companies and Groups
(Accounts and Reports)
Regulations 2008 Total of base salary, annual performance bonus (cash), pension cash allowance and other benefits