Barclays 2013 Annual Report Download - page 116

Long Term Incentive Plan
The BIS Regulations only require inclusion in the ‘Single total figure of remuneration’ the value of the LTIP awards whose last year of performance
ends in the relevant financial year and whose vesting outcome is known. This section sets out LTIP cycles in which the executive Directors
participate, the outcome of which remains dependent on future performance and whose value could be between nil and the full amount.
LTIP awards for 2013 performance year
The Committee decided to make awards under the 2014-2016 LTIP cycle to both Antony Jenkins and Tushar Morzaria with a face value at grant of
400% of their respective salaries at 31 December 2013. The 2014-2016 LTIP awards will be subject to the following performance measures.
Performance measure Weighting Threshold Maximum vesting
Return on Risk Weighted
Assets (RoRWA)
50% 23% of award vests for average annual
RoRWA of 1.08%
Average annual RoRWA of 1.52%
Loan loss rate 20% 7% of award vests for average annual loan
loss rate of 70 bps
Average annual loan loss rate of 55 bps
Balanced Scorecard 30% Performance against the Balanced Scorecard is assessed by the Committee to determine the %
of the award that may vest between 0% and 30%. Each of the 5Cs in the Balanced Scorecard
will have equal weighting. The targets within each of the 5Cs are deemed to be commercially
sensitive. However retrospective disclosure of the targets and performance against them will
be disclosed in the 2016 Remuneration Report subject to commercial sensitivity no longer
remaining.
Straight line vesting applies between the threshold and maximum points in respect of the RoRWA and Loan loss rate measures respectively. If the
Committee is satisfied with the underlying financial health of the Group based on profit before tax, depending on the extent of its satisfaction, the
percentage of shares that may be considered for release by the Committee under the RoRWA measure can be increased or decreased by 10% of
the total award, subject always to a maximum of 50% for the award calibrated against RoRWA.
Outstanding LTIP awards
(i) LTIP awards granted during 2012
The performance measures for the awards made under the 2012-2014 LTIP cycle are shown below.
Performance measure Weighting Threshold Maximum vesting
Return on Risk Weighted
Assets (‘RoRWA’)
60% 23% of award vests for average annual
RoRWA of 1.1%
Average annual RoRWA of 1.6%
Loan loss rate 30% 10% of award vests for average annual loan
loss rate of 93 bps
Average annual loan loss rate of 70 bps
or below
Citizenship metrics 10% Performance against the Barclays Citizenship strategy is assessed by the Committee to
determine the percentage of the award that may vest between 0% and 10%
Straight line vesting applies between the threshold and maximum points in respect of the RoRWA and Loan loss rate measures respectively.
Following the determination of the RoRWA vesting percentage, if the Committee is satisfied with the underlying financial health of the Group
based on cumulative profit before tax excluding own credit, it may at its discretion, adjust the percentage of award by up to five vesting points
(subject to the maximum of 60% for the award calibrated against RoRWA). Actual performance to be determined on the scheduled release date in
May 2015.
(ii) LTIP awards granted during 2013
Awards were made in March 2013 under the 2013-2015 LTIP cycle in accordance with our remuneration policy to the executive Directors.
% of salary Number of shares Face value at grant Performance period
Antony Jenkinsa400% 1,545,995 £4,400,000 2013-2015
Chris Lucasb400% 1,124,360 £3,200,000
Notes
a The maximum number of shares awarded to Antony Jenkins includes 117,888 shares as a Rights Issue adjustment. The original number of shares granted on 18 March 2013 was
1,428,107 at £3.08 per share.
b The maximum number of shares awarded to Chirs Lucas includes 85,737 shares as a Rights Issue adjustment. The original number of shares granted on 18 March 2013 was
1,038,623 shares at £3.08 per share.
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114 Barclays PLC Annual Report 2013
Remuneration report
Annual report on Directors’ remuneration continued