Barclays 2011 Annual Report Download - page 62

Remuneration report continued
Table 12: Performance conditions attaching to the long term incentive plans in which the executive Directors participate
Plan
Performance
period Performance measure Target
Barclays LTIP 2011-2013 60% of award calibrated against
RoRWA
23% of award vests for average annual RoRWA percentage of 1% over the
performance period. Maximum of 60% vests for average annual RoRWA of 1.5%.
Vesting on a straight line basis in between
30% of award calibrated against loan
loss rate
10% of award vests for average annual loan loss rate of 95bps over the
performance period. Maximum of 30% vests for 81bps or below. Vesting on a
straight line basis in between
10% of award calibrated against
sustainability metrics
Performance against the sustainability metrics is assessed by the Committee to
determine the percentage of the award that can vest between 0% and 10%
PSP 2010-2012 50% of award calibrated against a
relative TSR performance condition
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%
PSP 2009-2011 50% of award calibrated against a
relative TSR performance condition
As above (2010-2012)
50% average RoRWA 17% of maximum award released for 0.83% scaled to a maximum award at 1.34%
Outstanding long term awards
Barclays operates a number of long term plans to align the interests of
executive Directors, Code Staff and other senior employees with the
interests of shareholders and with the execution of Barclays strategy over
the longer term.
For the Performance Share Plan (PSP) and the Barclays LTIP, independent
confirmation is provided to the Committee of the extent to which each
performance condition has been met at the end of each performance period.
In relation to the 2006-2008 PSP award, the maximum number of shares that
could be released was determined in 2009 and fixed as shown in Table 10.
The Committee recommended that the number of shares shown in Table 10
be released in March 2011. In relation to the 2007-2009 PSP awards, the
voluntary clawback arrangement will cease in March 2012 at the end of the
two year clawback period. The 2007-2009 awards are not shown in Table 10
as the shares were released in 2010.
In relation to the 2008-2010 PSP awards, the total shareholder return (TSR)
performance measure was partially met but the economic profit
performance measure was not met. As a result, awards vested in March
2011 at 0.5 times the initial award (maximum is 3 times). In relation to the
2009-2011 PSP award, the underpin (as shown in Table 12) was met, the
RoRWA performance measure was met and the TSR performance measure
was partially met. As a result, the award will vest in 2012 at 2.1 times the
initial award (maximum is 3 times). These performance measures were
chosen for the reasons set out further in this report.
Table 10: Outstanding share plan and long term incentive plan awards (audited)
Number of shares
under award/option
at 1 January 2011
(maximum)
Number of shares
awarded in year
(maximum)
Market price
on award date
Weighted average
exercise price
Number of shares
released/exercised
Bob Diamond
PSP 2006-2008 1,164,273 – £6.75 – (1,164,273)
PSP 2008-2010 2,031,030 – £4.25 – (338,505)
PSP 2010-2012 5,563,902 – £3.55 – –
Incentive Share Option Plan 575,008 – – £4.25 –
Executive Share Award Scheme 2,699,215–––(2,453,074)
Share Value Plan 2011 – 850,524 £2.76 – –
Barclays LTIP 2011-2013 – 2,442,996 £2.76 – –
Chris Lucas
PSP 2008-2010 541,608 – £4.25 – (90,268)
PSP 2009-2011 1,598,046 – £2.34 – –
PSP 2010-2012 927,318 – £3.55 – –
Sharesave 3,735 – – £4.70 –
Executive Share Award Scheme 646,762––––
Share Value Plan 2011 – 195,439 £2.76 – –
Barclays LTIP 2011-2013 – 1,447,701 £2.76 – –
Table 11: Outstanding Contingent Capital Plan awards (audited)
Value under award at
1 January 2011
(maximum) (£000)
Value awarded in year
(maximum) (£000)
Value under award
at 31 December 2011
(maximum) (£000)
First scheduled
release date
Last scheduled
release date
Bob Diamond – 2,350 2,350 23/05/2012 23/05/2014
Chris Lucas – 540 540 23/05/2012 23/05/2014
Note to Table 11: Deferred cash bonuses were granted under CCP in 2011. The awards are dependent on future service and vest subject to clawback provisions and subject to the condition
that the Core Tier 1 ratio is equal to or exceeds 7%. On vesting, an additional discretionary benefit may be added equivalent to a coupon which for the awards shown is 7% on the award
amount (on an annualised and non-compounded basis). Executive Directors do not pay for CCP awards.
60 Barclays PLC Annual Report 2011 www.barclays.com/annualreport