Barclays 2012 Annual Report Download - page 34

Summary remuneration report
I hope that 2012 will be seen as a turning point in the way Barclays
approaches remuneration. For 2012 and in future we are taking a
different approach to the balance between Directors’ and employees’
remuneration, and returns for shareholders. We have been justifiably
criticised for failures to engage effectively with and explain our
decisions to shareholders and the wider public, as well as on some
occasions being criticised for the decisions themselves.
We have reviewed and adopted a new remuneration policy. This reflects
the direction of Barclays more broadly under the Transform Programme
led by Antony Jenkins, and the adoption across the whole Group of a
new statement of Barclays Purpose and Values.
We have made significant reductions to our remuneration costs.
Variable remuneration has been reduced overall by 16% and fixed
remuneration by 7% year on year. These are not one-off changes. They
reflect the Committee’s view that we are now on a multi-year path to
reposition Barclays remuneration.
We committed last year to a journey to bring down our compensation
ratios and have made good progress this year, with the Group
compensation to adjusted net operating income ratio declining to 38%
(2011: 42%). As a result our compensation ratios have moved from the
market median to the lower quartile within our industry. We believe a
ratio in the mid-30s is a sustainable position in the medium term which
will ensure that we can continue to pay our people competitively for
performance while also enabling us to deliver a greater share of the
income we generate to shareholders. We will be informed in this work
by a continuing constructive engagement and dialogue with our
shareholders and our other stakeholders.
The Committee’s focus in the coming months will be to continue
the process of repositioning remuneration at Barclays, and regaining
shareholder and public understanding and confidence. In future,
as part of the Transform Programme, individual performance will
be assessed against a balanced scorecard and performance will be
measured against Barclays values as well as other measures.
I believe 2012 saw us move significantly forward in achieving the
right balance between the priorities of our various stakeholders.
Reduced remuneration costs, increasingly robust risk adjustments
to both the incentive pool and individual incentive awards, tougher
performance conditions, new shareholding requirements, and
improved remuneration disclosures create a best practice framework
which we will continue to develop in the coming year and beyond.
On behalf of the Board
Sir John Sunderland
Chairman, Board Remuneration Committee
5 March 2013
The Board Remuneration Committee
provides governance and strategic
oversight of remuneration.
“We have made significant reductions
to our remuneration costs. They reflect
the Committee’s view that we are now
on a multi-year path to reposition
Barclays remuneration.”
Sir John Sunderland
Chairman, Board Remuneration Committee
The next two pages provide a summary of our remuneration policy,
governance, the link between remuneration and performance,
and 2012 incentives. Page 35 provides summary remuneration
disclosures required by statute. I encourage you to read our full
Directors’ Remuneration Report for 2012 on pages 72 to 103
which contains much fuller details on Barclays remuneration.
barclays.com/annualreport32 I Barclays PLC Annual Report 2012