Barclays 2015 Annual Report Download - page 114

112 I Barclays PLC Annual Report 2015 home.barclays/annualreport
Governance: Remuneration report
Directors’ remuneration policy (abridged)
Notes to the table on pages 108 to 111:
Performance measures and targets
The Committee selected the relevant financial and risk based performance measures because they are key to the bank’s strategy and are important
measures used by the executive Directors to oversee the direction of the business. The Balanced Scorecard has been selected as it demonstrates the
performance and progress of Barclays as measured across the following dimensions (5Cs): Customers & Clients, Colleagues, Citizenship, Conduct
and Company. Each of the 5Cs in the Balanced Scorecard will have equal weighting. All targets are set to be stretching but achievable and aligned to
enhancing shareholder value.
The Committee is of the opinion that the performance targets for the annual bonus and Balanced Scorecard element of the LTIP are commercially
sensitive in respect of the Company and that it would be detrimental to the interests of the Company to disclose them before the start of the
relevant performance period. The performance against those measures will be disclosed after the end of the relevant financial year in that year’s
remuneration report subject to the sensitivity no longer remaining.
Differences between the remuneration policy of the executive Directors and the policy for all employees of the Barclays Group
The structure of total remuneration packages for executive Directors and for the broader employee population is similar. Employees receive salary,
pension and benefits and are eligible to be considered for a bonus and to participate in all employee share plans. The broader employee population
typically does not have a contractual limit on the quantum of their remuneration and does not receive RBP which is paid only to some, but not all,
Code Staff. Executive Director RBP is determined on a similar basis to other Code Staff.
The Committee approaches any salary increases for executive Directors by benchmarking against market data for named banks. Incremental annual
salary increases remain more common among employees at less senior levels.
As with executive Directors, bonuses for the broader employee population are performance based. Bonuses for executive Directors and the broader
employee population are subject to deferral requirements. Executive Directors and other Code Staff are subject to deferral at a minimum rate of 40%
(for bonuses of no more than £500,000) or 60% (for bonuses of more than £500,000) but the Committee may choose to operate higher deferral
rates. For non-Code Staff, bonuses in excess of £65,000 are subject to a graduated level of deferral. The terms of deferred bonus awards for executive
Directors and the wider employee population are broadly the same, in particular the vesting of all deferred bonuses (subject to service and malus
conditions).
The broader employee population is not eligible to participate in the Barclays LTIP.
How shareholder views and broader employee pay are taken into account by the Committee in setting policy and making remuneration
decisions
We recognise that remuneration is an area of particular interest to shareholders and that in setting and considering changes to remuneration it is
critical that we listen to and take into account their views. Accordingly, a series of meetings are held each year with major shareholders and
shareholder representative groups (including the Association of British Insurers, National Association of Pension Funds and ISS). The Committee
Chairman attends these meetings, accompanied by senior Barclays’ employees (including the Reward and Performance Director and the Company
Secretary). The Committee notes that shareholder views on some matters are not always unanimous, but values the insight and engagement that
these interactions and the expression of sometimes different views provide. This engagement is meaningful and helpful to the Committee in its work
and contributes directly to the decisions made by the Committee.
The Committee takes account of the pay and employment conditions of the broader employee base when it considers the remuneration of the
executive Directors. The Committee receives and reviews analysis of remuneration proposals for employees across all of the Group’s businesses. This
includes analysis by corporate grade and by performance rating and information on proposed bonuses and salary increases across the employee
population and individual proposals for Code Staff and highly paid individuals. When the Committee considers executive Director remuneration, it
therefore makes that consideration in the context of a detailed understanding of remuneration for the broader employee population and uses the all
employee data to compare remuneration and ensure consistency throughout the Group. Employees are not consulted directly on the Directors’
remuneration policy.