Barclays 2010 Annual Report Download - page 245

39 Share-based payments
The Group operates share schemes for employees throughout the world. The share based payment charge represents 7.2% (2009: 3.0%) of employee
costs and unvested share awards, including options, amount to 6.6% (2009: 6.0%) of issued share capital.
The charge for the year arising from share based payment schemes was as follows:
Charge for the year
2010
£m
2009
£m
2008
£m
Share Value Plan 361 – –
Performance share Plan 58 33 14
Incentive share Plan 50 18 7
Executive Share Award Scheme 304 178 216
Sharesave 20 29 (7)
Others 44 20 (8)
Total Equity Settled 837 278 222
Cash Settled 23 8 3
Total Continuing operation 860 286 225
Discontinued operations –12 35
Total share based payments 860 298 260
The terms of the main current plans are as follows:
Share value plan (SVP)
The Share Value Plan (SVP) was introduced in March 2010. SVP awards are granted to participants in the form of a provisional allocation of Barclays
shares which vest over a period of three years in equal annual tranches. Participants do not pay to receive an award or to receive a release of shares.
Awards under the SVP qualify for dividends.
Performance Share Plan (PSP)
The Performance Share Plan (PSP) was approved by shareholders at the 2005 AGM to replace the ISOP scheme. Performance shares are ‘free’ Barclays
shares for which no exercise price is payable and which qualify for dividends. Performance share awards are communicated to participants as an initial
allocation. Barclays performance over a three-year period determines the final number of shares that may be released to participants.
Incentive Share Plan (ISP)
The Incentive Share Plan (Incentive Shares) was introduced in March 2008. Incentive Shares are granted to participants in the form of a provisional
allocation of Barclays shares which vest upon achieving continued service after three years. Participants do not pay to receive an award or to receive a
release of shares. Incentive Shares qualify for dividends.
Executive Share Award Scheme (ESAS)
For certain employees of the Group an element of their annual bonus is in the form of a deferred award of a provisional allocation of Barclays PLC shares
under ESAS. The total value of the bonus made to the employee, of which ESAS is an element, is dependent upon the business unit, Group and
individual employee performance. The ESAS element of the annual bonus must normally be held for at least three years. Additional bonus shares are
subsequently awarded to recipients of the provisional allocation and vest upon achieving continued service for three and five years from the date of
award. ESAS awards are also made to eligible employees for recruitment purposes under JSAP (Joiners Share Award Plan). All awards are subject to
potential forfeiture if the individual resigns and commences work with a competitor business. LTIP plans are cash and equity performance plans which
after 3 years (dependant on performance) pay half in cash and the remaining half in shares which are placed into ESAS for a further 1 or 2 years.
Sharesave
Eligible employees in the UK, Spain and Ireland may participate in the Barclays Sharesave scheme. Under this scheme, employees may enter into
contracts to save up to £250 per month (Ireland: €300, Spain: €225) and at the expiry of a fixed term of three, five or seven years (Spain: three years)
have the option to use these savings to acquire shares in the Company at a discount, calculated in accordance with the rules of the scheme. The
discount is currently 20% of the market price at the date the options are granted. Participants in the scheme have six months from the date of vest
in which the option can be exercised.
UK Sharepurchase
Sharepurchase was introduced in January 2002. It is an HM Revenue & Customs approved all-employee share plan. The plan is open to all eligible UK
employees, including executive Directors. Under the plan, participants are able to purchase up to £1,500 worth of Barclays PLC ordinary shares per tax
year, which if kept in trust for five years can be withdrawn from the plan tax-free. Matching shares were introduced to the scheme during 2005 where
the purchase of Barclays shares by the participant are matched equally by the Company up to a maximum value of £600 per tax year. Shares in the plan
will earn dividends in the form of additional shares, which must normally be held by the trustee for three years before being eligible for release.
Barclays PLC Annual Report 2010 www.barclays.com/annualreport10 243
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