Barclays 2012 Annual Report Download - page 45

Board governance –
responding to the LIBOR announcement
In response to the announcement in June 2012 and subsequent events, the Board set up three
specific sub-committees of the Board, chaired by me in my capacity as Deputy Chairman and
Senior Independent Director.
LIBOR Employee Investigation Review Committee
The purpose of this Committee, which comprised me, Sir John Sunderland and Marcus Agius,
who was succeeded following his retirement by Sir David Walker, was to provide a level of Board
oversight in respect of the review of the conduct of certain current and former employees in
relation to LIBOR. The Committee’s role was to satisfy itself that proper processes had been
followed and that outcomes were appropriate. To assist the Committee in fulfilling this
responsibility, the Committee appointed an independent adviser, John Turnbull from Linklaters
LLP, who reviewed the scope and methodology of the review and the resulting outcomes.
We met four times during the second half of 2012 to consider the progress of the review and the
outcomes. At the conclusion of the review, 13 current employees were subject to disciplinary
action, including 5 who were dismissed. In total, deferred compensation amounting to £24.6m
was clawed back from 15 current and former employees as a result of the review. This excludes
any sums voluntarily surrendered by individuals. The Board Remuneration Committee
considered the wider application of claw back and further details are in the Remuneration
Report. The Committee was satisfied that a thorough and fair process was conducted and that
the outcomes of the review were appropriate in each individual case. This view was supported
by our independent adviser.
Business Practices Review Committee
The Business Practices Review Committee comprises me, David Booth and Sir John Sunderland
and was established following Barclays announcement in July 2012 that Anthony Salz would
conduct an independent review of Barclays business practices (the Salz Review). The purpose of
the Committee is to oversee the progress of the Salz Review and report to the Board on progress,
to consider any recommendations arising from the Salz Review and to oversee any action to be
taken as a result. The Committee met twice in the second half of 2012 to check on the progress
of the review and has held further meetings in early 2013. The Committee will meet again to
discuss the recommendations of the Salz Review and Barclays response, which are due to be
published prior to the 2013 AGM. In addition to the formal meetings of the Committee, I have
also met with Anthony Salz directly on a number of occasions.
Regulatory Investigations Committee
In the fourth quarter of 2012, the Board established a Regulatory Investigations Committee
comprising me, Antony Jenkins, Sir John Sunderland and Sir David Walker. The primary purpose
of this Committee is to oversee certain regulatory investigations, to consider the findings of
those investigations and to direct the scope and conduct of those investigations as appropriate,
including directing and overseeing any remediation activities and considering whether any
disciplinary action is required in respect of any Barclays employee. The Committee met four
times in 2012 and will continue to meet in 2013. The Committee has appointed an independent
external adviser, John Turnbull from Linklaters LLP, to assist it in its deliberations. Sir David
Walker assumed chairmanship of the Committee in early 2013.
Sir Michael Rake
Deputy Chairman and Senior Independent Director
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