Barclays 2010 Annual Report Download - page 177

in 2008) lapsed during the year. Mr Varley held nil cost options over 206,934 shares under
ESAS as at 1st January 2010, and none as at 31st December 2010. The first and last
exercise dates were 7th March 2008 and 1st March 2011 respectively. Mr Varley received
45,191 dividend shares and Mr Diamond received 83,541 dividend shares from ESAS
awards released during the year (share price on release date was £3.48). On release of the
2007-09 PSP awards, Mr Varley received 28,555 dividend shares, Mr Diamond received
163,002 dividend shares and Mr Lucas received 14,462 dividend shares (share price on
release date was £3.48).
Market price
on release/
exercise date
Number of shares
lapsed in 2010
Number of shares
under award/option at
31st December 2010
(maximum)
Vested number of
shares under option
Value of
release/exercise
End of three-year
PSP performance
period, or first
exercise/scheduled
release date
Last exercise/
scheduled
release date
– – 232,855 – – 31/12/2008 01/03/2011
£3.48 (252,147) – – £0.88m 31/12/2009 15/03/2010
– – 812,412 – – 31/12/2010 01/03/2011
– (246,431) 698,224 698,224 – 18/05/2003 30/09/2012
– – 3,735 – – 01/10/2011 30/03/2012
£3.48 – 154,185 – £0.96m 15/03/2010 21/03/2012
– – 1,164,273 – – 31/12/2008 01/03/2011
£3.48 (1,439,343) – – £5.01m 31/12/2009 15/03/2010
– – 2,031,030 – – 31/12/2010 01/03/2011
– – 5,563,902 – – 31/12/2012 16/03/2013
– – 575,008 575,008 – 12/03/2004 22/03/2014
£3.48 – 2,699,215 – £2.32m 15/03/2010 20/03/2013
£3.48 (127,698) – – £0.44m 31/12/2009 15/03/2010
– – 541,608 – – 31/12/2010 01/03/2011
– – 1,598,046 – – 31/12/2011 27/04/2012
– – 927,318 – – 31/12/2012 16/03/2013
– – 3,735 – – 01/11/2014 30/04/2015
– – 646,762 – – 20/03/2011 16/03/2015
TSR peer group constituents
Underpin
Actual
performanceUK Mainland Europe US
HSBC Banco Santander, BBVA,
BNP Paribas, Credit
Suisse, Deutsche Bank,
Société Générale,
Unicredit
Bank of America,
JP Morgan Chase,
Morgan Stanley
Committee must be satisfied with the
underlying financial health of the Group
after considering EP and PBT on a
cumulative basis over the three year
period
To be determined
at vesting in
March 2013
HSBC, Lloyds Banking
Group,
Royal Bank of Scotland
Banco Santander, BBVA,
BNP Paribas, Deutsche
Bank, UBS, Unicredit
Citigroup,
JP Morgan Chase
As above To be determined
at vesting in
March 2012
HBOS, HSBC, Lloyds TSB,
Royal Bank of Scotland
As above (2009-11) As above Cumulative EP over performance period
must exceed cumulative EP over previous
three years
The performance
condition was
partially met
Directors will repay the value of the Barclays shares at the end of the
two year period (after deduction of taxes paid) should a dividend not be
paid during the two year period or the Committee judges that the
financial health of the business has deteriorated significantly over the
two year period.
In relation to the 2008-2010 PSP awards, the underpin (as shown in Table
10) was satisfied, the TSR condition was met but the Economic Profit (EP)
condition was not met. As a result, the awards vested in March 2011 at
0.5 times the initial award (maximum is 3 times).
For the 2009-2011 and 2010-2012 PSP awards the performance measures
are relative TSR and RoRWA. TSR was selected to align performance with
Barclays shareholders. RoRWA was selected as a risk-adjusted performance
measure to reflect the Group’s stated goal of focus on returns over growth.
Calibration of performance measures is agreed ahead of each award by the
Committee supported by a working team with representatives from Human
Resources, Finance and Risk. This process includes an assessment of
relevant data including financial targets, analyst forecasts, internal and
external views of comparator future performance levels, shareholder views
and value and broader economic trends. All performance measures are
calibrated to include a significant level of stretch to attain maximum payout.
All awards and releases are recommended by the Committee to the
independent trustee and are subject to trustee discretion. The trustee may
also release to participants dividend shares which represent accumulated
dividends (net of withholding tax) in respect of the Barclays shares under
awards that vest. During 2010 Barclays highest share price was £3.83 and
the lowest was £2.55. The Barclays share price at year end was £2.62.
Barclays PLC Annual Report 2010 www.barclays.com/annualreport10 175
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