Barclays 2010 Annual Report Download - page 176

Numbers shown for ESAS above represent provisional allocations that have been awarded.
Numbers shown as aggregate ESAS amounts may also include shares under option as at
31st December 2010. Nil cost options are normally granted under mandatory ESAS awards
at the third anniversary of grant and are exercisable (over initial allocation and two-thirds of
bonus shares) typically for two years. The aggregate exercise price of a nil cost option is £1.
At the fifth anniversary of the provisional allocation the nil cost options normally lapse and
the shares (including bonus shares) are released at the discretion of the ESAS trustee. In
2010, no nil cost options were granted to the executive Directors. Nil cost options (granted
Corporate governance
Remuneration report continued
Table 9: Outstanding share plan and long term incentive awards
Number of shares
under award/option
at 1st January 2010
(maximum)
Number of shares
awarded in year
(maximum)
Market price
on award date
Weighted average
exercise price
Number of shares
released/exercised
John Varley
PSP 2006-2008 232,855 – £6.75 – –
PSP 2007-2009 504,294 – £7.08 – (252,147)
PSP 2008-2010 812,412 – £4.25 – –
ISOP 944,655 – – £4.46 –
Sharesave 3,735 – – £4.70 –
ESAS 430,969 – – – (276,784)
Robert E Diamond Jr
PSP 2006-2008 1,164,273 – £6.75 – –
PSP 2007-2009 2,878,686 – £7.08 – (1,439,343)
PSP 2008-2010 2,031,030 – £4.25 – –
PSP 2010-2012 – 5,563,902 £3.55 – –
ISOP 575,008 – – £4.42 –
ESAS 3,365,882 – – – (666,667)
Chris Lucas
PSP 2007-2009 255,396 – £7.08 – (127,698)
PSP 2008-2010 541,608 – £4.25 – –
PSP 2009-2011 1,598,046 – £2.34 – –
PSP 2010-2012 – 927,318 £3.55 – –
Sharesave 3,735 – – £4.70 –
ESAS 44,006 602,756 – – –
Table 10: Performance conditions attaching to the share plans in which the executive Directors participate
Scheme
Performance
period Performance measure Target
PSP 2010-2012 50% of award calibrated against TSR 33% of maximum award released for above median performance
(6th place) with 100% released in 1st place and a scaled basis
in between
50% average RoRWA 17% of maximum award released for 0.83% scaled to a maximum
award at 1.46%
2009-2011 50% of award calibrated against TSR As above
50% average RoRWA 17% of maximum award released for 0.83% scaled to a maximum
award at 1.34%
2008-2010 50% of award calibrated against TSR As above
50% of award calibrated against cumulative EP
over the three-year performance period
33% of the maximum award released for £6,921m scaled to 100%
of maximum award at £8,350m
Outstanding share plan and long term incentive plan awards
Barclays operates a number of share plans to align the interests of employees
with shareholders and the execution of Group strategy over the longer term.
Table 9 summarises the interests of each executive Director in each plan, and
Table 10 summarises the three year performance conditions set at grant for
outstanding Performance Share Plan (PSP) cycles. The interests shown are
the maximum number of Barclays shares that may be received under each
plan. Executive Directors do not pay for any share plan award.
For PSP, at the end of each performance period independent confirmation
is provided to the Committee of the extent to which each performance
condition has been met. In relation to the 2006-2008 PSP awards, after
consultation with the Committee in 2009, the participating executive
Directors wrote to the PSP trustee to request that it defer the exercise of
its discretion to release shares to them for a further two year period
subject to continued employment and an assessment by the Committee
that the financial performance of the Group was satisfactory, including the
declaration of at least one dividend. The maximum number of Barclays
shares that may be released was determined in 2009 and was fixed as
set out in Table 9. The Committee reviewed the performance conditions
in February 2011 taking account of factors including profit performance,
capital ratios, share price and payment of dividends. The Committee
recommended that the number of Barclays shares shown in Table 9 be
released in March 2011.
In relation to the 2007-2009 PSP awards, the executive Directors agreed to
voluntary clawback arrangements to operate for a two year period following
the vesting of the awards. By this voluntary agreement, the executive
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