Barclays 2014 Annual Report Download - page 32

30 I Barclays PLC Annual Report 2014 barclays.com/annualreport
Running the company well
Becoming ‘Go-To’
Overall summary
The initial performance assessment outcome was 83% for each of the Directors. The Committee subsequently used its discretion to reduce the
overall outcome. The adjustment was considered appropriate in the context of an holistic assessment which recognised that, amongst other
factors, while there has been solid financial performance and steady progress has been made on strategic repositioning, statutory profit before
tax continues to be impacted by material conduct issues and there remains significant further work to be done to improve overall returns.
This adjustment therefore also incorporated consideration of executive accountability for the significant Group-wide conduct issues that impacted
Barclays in 2014 which included, for example, the ongoing Foreign Exchange trading investigations. The resulting 2014 bonus is £1,100,000
(57% of maximum bonus) for Antony Jenkins and £900,000 (64% of maximum bonus) for Tushar Morzaria.
60% of each executive Director’s 2014 bonus will be deferred in the form of an award under the Share Value Plan vesting over three years with one
third vesting each year. 20% will be paid in cash and 20% delivered in shares. All shares (whether deferred or not deferred) are subject to a further
six month holding period from the point of release. 2014 bonuses are subject to clawback provisions and, additionally, unvested deferred 2014
bonuses are subject to malus provisions which enable the Committee to reduce the vesting level of deferred bonuses (including to nil).
LTIP
Barclays LTIP amount included in Antony Jenkins’ 2014 single total figure is the value of the amount scheduled to be released in relation to the
LTIP award granted in 2012 in respect of performance period 2012-2014. As Tushar Morzaria was not a participant in this cycle, the LTIP figure in
the single figure table is shown as zero for him. Release is dependent on, amongst other things, performance over the period from 1 January 2012
to 31 December 2014. The performance achieved against the performance targets is as follows.
Performance measure Weighting Threshold Maximum 100% vesting Actual % of maximum achieved
Return on Risk Weighted
Assets (RoRWA)
60% 23% of award vests
for average annual
RoRWA of 1.1%
Average annual
RoRWA of 1.6%
0.5% 0%
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
60 bps 30%
Citizenship metrics 10% Performance against the Barclays Citizenship
strategy is assessed by the Committee to
determine the % of the award that may vest
between 0% and 10%
N/A 0%
The LTIP award is also subject to a discretionary underpin in that the Committee must be satisfied with the underlying financial health of the
Group. The Committee was satisfied that this underpin was met, and accordingly determined that the award should be considered for release to
the extent of 30% of the maximum number of shares under the total award. The shares are scheduled to be released in May 2015. 50% of any
shares that are released (after deductions for income tax and social security contributions) are subject to a 12 month holding period.
Pension
Executive directors are paid cash in lieu of pension contributions. This is market practice for senior executives in comparable roles.