Barclays 2012 Annual Report Download - page 35

Remuneration governance
The Committee is responsible for setting the over-arching objectives,
principles and parameters of remuneration policy across the Group.
It oversees all Barclays remuneration matters including incentive pool
decisions, together with oversight and approval of remuneration for
executive Directors, members of the Group and business unit Executive
Committees, Code Staff and all employees with total annual remuneration
of £1m or more. It also approves major changes in Barclays pension,
benefits and long term incentive plans. The Committee takes into account
independent advice and appraisals of latest market data when considering
incentive levels and remuneration packages. The Committee also receives
regular updates on Group and business financial performance and the
Group’s risk profile from the Group Finance Director and Chief Risk
Officer respectively.
For individual remuneration decisions made by the Committee,
including the decisions for executive Directors, the level of
remuneration across Barclays and each of the businesses is taken
into account. The combined potential remuneration for the executive
Directors and for senior employees from bonuses and long term
incentive awards outweighs the fixed component of remuneration,
and is subject to individual and business performance. This means
that the majority of remuneration is risk-adjusted.
Remuneration and performance
Adherence to the principles of the new remuneration policy means that
remuneration decisions for all employees across the whole of Barclays
are aligned with and support the achievement of Barclays goal of
becoming the ‘Go-To’ bank.
This is achieved by linking remuneration to performance, assessing
both ‘what’ is achieved and also ‘how’ goals are achieved. So we will
measure and reward our people, not just on commercial success but
on how they live Barclays values and behaviours in their daily work.
We will embed Barclays values in the way remuneration is managed by
incorporating a balanced scorecard of both financial and non-financial
measures into the performance appraisal process. Our balanced scorecard
is a key part of the cultural change that is required to deliver the strategy of
the Transform Programme. It measures Barclays performance across the
following dimensions – Customers and Clients, Colleagues, Citizenship,
Conduct and Company.
Linking our employee performance assessments and remuneration
decisions to the balanced scorecard promotes a clear and direct
alignment between remuneration policy and Barclays strategy.
Remuneration policy
The Committee reviews and updates the Barclays remuneration policy
periodically. For 2013, as part of the Transform Programme, the policy
has been significantly updated. The principles set out in the policy
underpin both 2012 remuneration decisions and the Committee’s
objectives for 2013 and beyond.
The new remuneration policy is set out in the table below.
Barclays remuneration decisions:
1. Support the goal of becoming the ‘Go-To’ bank by attracting,
retaining and competitively rewarding colleagues with the ability,
experience, skill, values and behaviours to deliver that goal.
2. Will only reward business results when these are achieved in a
manner consistent with Barclays values and behaviours:
 Respect: We respect and value those we work with, and the
contribution that they make.
 Integrity: We act fairly, ethically and openly in all we do.
 Service: We put our clients and customers at the centre of
what we do.
 Excellence: We use our energy, skills and resources to deliver
the best, sustainable results.
 Stewardship: We are passionate about leaving things better
than we found them.
3. Protect and promote shareholder interests by incentivising
colleagues to deliver sustained performance and create long term
value through the delivery of Barclays goal. Those decisions will
reflect that performance for individuals and in aggregate. Barclays
will pay competitively for high performance but will not pay more
than the amount appropriate to maximise the long term value of
the bank for its shareholders.
4. Create a direct and recognisable alignment between
remuneration and risk exposure, as well as adjusting current and
deferred incentives for current and historic risk, including malus
adjustments, as appropriate.
5. Should be as simple and clear for colleagues and stakeholders
as possible – as is the process used to determine them.
6. Ensure that balance between shareholder returns and
remuneration is appropriate, clear and supports long term
shareholder interests.
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