Barclays 2012 Annual Report Download - page 78

Remuneration policy for all employees
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.
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 our 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.
We will implement the following changes and improvements to the
performance assessment process:
 During 2013 all senior executives’ performance assessment and
objectives will be explicitly linked to the balanced scorecard and to
our values. They will therefore see how their own performance, and
the assessment of it by their manager (and the Committee), is linked
to Barclays strategy;
 Similar linkage of performance assessment and variable
remuneration decisions for all employees will follow during 2013 and
2014;
 Personal objectives will be closely aligned with scorecards for the
individual business or function in which employees work, which will
align with and support the Group balanced scorecard;
 In addition to an assessment of ‘what’ each employee has achieved,
appraisals will also include an overall, holistic, review of behaviours
which will overlay a specific focus on ‘how’ the results of the
individual’s work have been achieved, and whether they have been
achieved in a way which is consistent with our values; and
 The balanced scorecard approach will also underpin business and
Group-wide decisions, in particular the Committee’s determination of
incentive pools. It will also be part of the performance condition
attached to awards under the 2013-2015 Barclays Long Term
Incentive Plan.
This means that all individual incentive decisions will be linked to
Group, business (or function) and individual performance.
Barclays approach to remuneration
This section sets out Barclays remuneration policy for all employees, explaining the purpose and principles
underlying the structure of remuneration packages, and how the policy links remuneration to the achievement of
sustained high performance and long term value creation.
barclays.com/annualreport76 I Barclays PLC Annual Report 2012