Barclays 2014 Annual Report Download - page 90

88 I Barclays PLC Annual Report 2014 barclays.com/annualreport
Governance: Remuneration report
Annual report on Directors’ remuneration
(ii) Tushar Morzaria
The Committee undertook the same considerations in respect of financial performance, achievement against the Balanced Scorecard targets and
personal measures for Tushar Morzaria. A summary of the assessment for Tushar Morzaria against his specific performance measures is provided
in the following table.
Tushar Morzaria
Performance measures Weighting Target 2014 Assessment Outcome
Financial
Adjusted profit before tax 20% £5.14bn – £5.92bn £5.5bn 100% 20%
Adjusted Costs (ex CTA) 10% £17.11bn – £16.24bn £16.9bn 100% 10%
CET1 ratio (fully loaded basis) 10% 10.1% – 10.6% 10.3% 100% 10%
Leverage ratio 10% 3.0% – 3.5% 3.7% 100% 10%
Balanced Scorecard – 5 Cs
2018 targets are set
out at page 11
Steady progress
on all targets
Customer & Client
Colleague
Citizenship 35% 22%
Conduct
Company
Personal objectives/contribution 15% See below Judgemental
assessment
11%
Total 100% 83%
Final outcome after the exercise of
Remuneration Committee discretion 64%
The assessment on the financial and Balanced Scorecard performance measures is set out above. There was continued strong momentum on
costs and capital both for the year and in terms of progress towards 2016 financial targets. On a personal basis, the Committee concluded that
Tushar Morzaria had demonstrated a consistent strive for excellence and challenged the status quo where appropriate to drive results and achieve
cost targets. He has also demonstrated strong and effective leadership of the finance, tax and treasury functions and has developed strong
external relationships with the regulators.
In aggregate, performance assessment resulted in an overall outcome of 83% of maximum being achieved. Following a holistic review by the
Committee and after the exercise of discretion, the annual bonus has been set at £900,000 (64% of maximum bonus).
Executive Directors: Other LTIP awards
The Directors’ remuneration reporting regulations require inclusion in the single total figure of only the value of the LTIP awards whose last year of
performance ends in the relevant financial year and whose vesting outcome is known. For 2014, this is the award to Antony Jenkins under the
2012-2014 LTIP cycle and further details are set out on page 86. This section sets out other LTIP cycles in which the executive Directors participate,
the outcome of which remains dependent on future performance.
LTIP awards to be granted during 2015
The Committee decided to make awards under the 2015-2017 LTIP cycle to both Antony Jenkins and Tushar Morzaria with a face value at grant of
120% of their respective fixed pay at 31 December 2014. The 2015-2017 LTIP awards will be subject to the following performance measures.
Performance measure Weighting Threshold Maximum vesting
Net Generated Equitya30% 7.5% of award vests for Net Generated Equity
of £1,363m
Net Generated Equity of £1,844m
Core Return on Risk Weighted
Assets (RoRWA) excluding
own credit
20% 5% of award vests for average annual Core
RoRWA of 1.34%
Average annual Core RoRWA of 1.81%
Non-Core drag on Adjusted
Return on Equity (RoE) 10%
2.5% of award vests for Non-Core drag on
Adjusted RoE of –4.02% Non-Core drag on Adjusted RoE of –2.97%
Loan Loss Rate 10% 2.5% of award vests for average annual loan
loss rate of 70bps
Average annual loan loss rate of 55bps or below
Balanced Scorecard 30% Performance against the Balanced Scorecard is assessed by the Committee to determine the
percentage of the award that may vest between 0% and 30%. Each of the 5Cs in the Balanced
Scorecard has 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
made in the 2017 Remuneration Report subject to commercial sensitivity no longer remaining.
Note
a Net Generated Equity is a metric which converts changes in the CET1 ratio into an absolute capital equivalent measure. For remuneration purposes, Net Generated Equity will
exclude inorganic actions such as rights issues, as determined by the Committee.
Straight line vesting applies between the threshold and maximum points in respect of the financial and risk measures.
The awards are subject to a discretionary underpin by which the Committee must be satisfied with the underlying financial health of the Group.
Awards under the 2015-2017 LTIP cycle will also be subject to malus and clawback provisions.