Barclays 2011 Annual Report Download - page 63

For the 2010-2012 PSP awards the performance measures are relative TSR
and RoRWA. For the 2011-2013 Barclays LTIP awards the performance
measures are RoRWA, loan loss rate and sustainability metrics including
customer satisfaction, employee opinion surveys and Barclays relationships
with its regulators. TSR was selected to align performance with Barclays
shareholders. RoRWA was selected because it is a primary determinant of
return on equity, which is closely correlated with the price to book multiple
at which Barclays shares trade, but cannot be influenced by leverage. Loan
loss rate encourages strong management of credit risk. The sustainability
metrics were chosen to align performance to the Citizenship execution
priority (sustainability is now referred to as Citizenship).
Calibration of performance measures is agreed ahead of each award by the
Committee supported by a working team with representatives from the human
resources, strategy, finance and risk functions. 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 broader economic trends. All performance measures are
calibrated to include a significant level of stretch to attain maximum payout.
Participants may also receive dividend shares which represent accumulated
dividends (net of withholding tax) in respect of the Barclays shares under
awards that vest. During 2011 Barclays highest share price was £3.34 and the
lowest was £1.39. The Barclays share price on 30 December 2011 was £1.76.
PSP awards: TSR peer group constituents
Underpin
Actual
performanceUK Mainland Europe US
Following the determination of the RoRWA
vesting percentage, the Committee may
take into account profit before tax over the
performance period and may, at its
discretion, adjust the percentage of award
up or down by up to 5 vesting percentage
points (subject to the maximum of 60%
for the award calibrated against RoRWA)
To be determined
at vesting in
May 2014
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 economic profit and profit
before tax 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 (2010-12) Performance
condition partially
met
Note to Table 10: 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 or long term
incentive plan awards. Numbers shown for Executive Share Award Scheme (ESAS) represent
provisional allocations that have been awarded and may also include shares under option as
at 31 December 2011. 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
2011, nil cost options over 43,077 shares were granted to Chris Lucas. Chris Lucas did not
hold any options under ESAS as at 1 January 2011, and held options over 43,077 shares as at
31 December 2011. The first and last exercise dates were 1 March 2011 and 19 March 2013
respectively. Bob Diamond received 160,702 dividend shares from ESAS awards released in
2011 (market price on release date was £3.183). Bob Diamond received 232,702 dividend
shares and Chris Lucas received 5,458 dividend shares from PSP awards released in 2011
(market price on release date was £3.183). Share Value Plan (SVP) awards do not have
performance conditions as the awards are deferred share bonuses. Vesting of SVP awards is
dependent on future service and subject to clawback provisions.
Market price
on release/
exercise date
Number of shares
lapsed in 2011
Number of shares
under award/option at
31 December 2011
(maximum)
Vested number of
shares under option
Value of
release/exercise
End of three-year
performance period, or
first exercise/scheduled
release date
Last exercise/
scheduled
release date
£3.183–––£3.71m 31/12/2008 01/03/2011
£3.183 (1,692,525) – – £1.08m 31/12/2010 01/03/2011
– – 5,563,902 – – 31/12/2012 16/03/2013
– (102,680) 472,328 472,328 – 20/03/2005 22/03/2014
£3.183 – 246,141 – £7.81m 21/03/2012 20/03/2013
– – 850,524 – – 07/05/2012 06/05/2014
– – 2,442,996 – – 31/12/2013 06/05/2014
£3.183 (451,340) – – £0.29m 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 40,621 – 20/03/2011 16/03/2015
– – 195,439 – – 07/05/2012 06/05/2014
– – 1,447,701 – – 31/12/2013 06/05/2014
Barclays PLC Annual Report 2011 www.barclays.com/annualreport 61
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