Barclays 2015 Annual Report Download - page 32

30 I Barclays PLC Annual Report 2015 home.barclays/annualreport
…with a relevant and balanced remuneration framework… continued
Balanced Scorecard (35% weighting)
Progress in relation to each of the five ‘Cs’ of the Balanced Scorecard was assessed by the Committee. The Committee took an approach based on
a three-point scale in relation to each measure, with 0% to 3% for ‘below’ target, 4% or 5% for ‘met’ target, and 6% or 7% for ‘above’ target
progress against a particular Balanced Scorecard component.
Balanced Scorecard – 5Cs Weighting Metric
2 0 15
Target
2 0 15
Actual
2 0 15
Assessment
2 0 15
Outcome out
of maximum
7% for each ‘C’
Customer and Client 7% PCB, Barclaycard and Africa Banking
weighted average ranking of Relationship
Net Promoter Score v peer sets
4th 4th Met target
4.0%
Client Franchise Risk 5th 5th Met target
Colleague 7% Sustained engagement of colleagues’ score 82-88% 75% Below target 2.0%
% women in senior leadership 23% 23% Met target
Citizenship 7% Citizenship Plan – initiatives 11/11 10/11 Below target 3.0%
Conduct 7% Conduct Reputation (YouGov Survey) 5.6/10 5.4/10 Below target 3.0%
Company 7% Adjusted return on equity 5.9% 4.9% Below target 3.0%
CET1 ratio 11.0% 11.4% Above target
Total Balanced Scorecard 35% 15.0%
Personal objectives (15% weighting)
(i) Antony Jenkins: The Committee recognised that during the first half of the year Antony Jenkins showed full commitment to continuing to embed a
customer and client focused culture backed by the Barclays Values and to delivering on financial commitments with particular focus on capital
accretion, reducing costs and continuing the rundown of Non-Core. The Committee judged that 11 % of a maximum of 15% was appropriate.
(ii) Tushar Morzaria: The Committee concluded that Tushar Morzaria had delivered a strong personal performance throughout the year, and noted
that during the second half of the year (pending Jes Staley’s arrival) this was achieved while discharging considerably increased executive
responsibilities. During 2015, Tushar Morzaria continued to drive transformational change, played a significant role in the improvement in the
Bank’s capital position and in driving further focus on close and effective cost management. The Committee judged that 13% of a maximum of
15% was appropriate.
Overall summary
The performance assessment for Antony Jenkins resulted in an overall formulaic outcome of 48.1% of maximum bonus opportunity being achieved.
Antony Jenkins’ resulting 2015 bonus, pro-rated for service, is £505,000. The formulaic outcome for Tushar Morzaria was 50.1% of maximum bonus
opportunity. Tushar Morzaria’s resulting 2015 bonus is £701,000.
60% of each executive Director’s 2015 bonus will be deferred in the form of a share 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. 2015 bonuses are subject to clawback provisions and, additionally, unvested deferred
2015 bonuses are subject to malus provisions which enable the Committee to reduce the vesting level of deferred bonuses (including to nil).
LTIP
The LTIP amount included in Antony Jenkins’ 2015 single total figure is the value of the amount scheduled to be released in relation to the LTIP award
granted in 2013 in respect of performance period 2013-2015. Tushar Morzaria and Jes Staley were not participants in this cycle. The performance
achieved against the performance targets is as follows.
Performance measure Weighting Threshold Maximum vesting Actual % of award vesting
Return on risk weighted
assets (RoRWA)
50% 13% of award vests
for average annual
RoRWA of 1.1%
Average annual
RoRWA of 1.6%
0.21% 0%
Loan loss rate 30% 10% of award vests
for average annual
loan loss rate of
75bps
Average annual loan
loss rate of 60bps or
below
53bps 30%
Balanced Scorecard 20% Performance was assessed by the Committee
to determine the percentage of the award that
may vest. Each of the 5Cs in the Balanced
Scorecard has equal weighting.
See page 93 9%
The Committee was also satisfied that the discretionary underpin in respect of the underlying financial health of the Group based on profit before tax
was met, and accordingly determined that 39% of the maximum number of shares under the total award should be considered for release in March
2016. After release, the shares are subject to an additional two year holding period.
Pension
Executive Directors are paid cash in lieu of pension contributions. This is market practice for senior executives in comparable roles.