Barclays 2015 Annual Report Download - page 88

86 I Barclays PLC Annual Report 2015 home.barclays/annualreport
Governance: Remuneration report
Remuneration philosophy
In October 2015, the Committee formally adopted a revised, simplified remuneration philosophy which articulates Barclays’ overarching remuneration
approach and is set out below.
Barclays’ Remuneration philosophy
Attract and retain talent needed to deliver Barclays’ strategy Long term success depends on the talent of our employees. This
means attracting and retaining an appropriate range of talent to deliver
against our strategy, and paying the right amount for that talent
Align pay with investor interests Ensure employees’ interests are aligned with those of investors (equity
and debt holders), both in structure and the appropriate balance of
returns
Reward sustainable performance Sustainable performance means making a positive contribution to
stakeholders, in both the short and longer term, playing a valuable role
in society
Support Barclays’ Values and culture Results must be achieved in a manner consistent with our Values. Our
Values and culture should drive the way that business is conducted
Align with risk appetite, risk exposure and conduct expectations Designed to reward employees for achieving results in line with the
Bank’s risk appetite and conduct expectations
Be clear, transparent and as simple as possible All employees and stakeholders should understand how we reward our
employees. Remuneration structures should be as simple as possible
so that everyone can understand how they work and the behaviours
they reward
Remuneration and performance
Our remuneration philosophy applies to all employees across the whole of Barclays. It ensures that all employees are aligned with and support the
achievement of Barclays’ Group priorities.
This is achieved by linking remuneration to a broad assessment of performance, based on expected standards of delivery and behaviour, which are
discussed with employees at the start of, and throughout, the performance year. Under the Barclays’ performance management approach,
employees are encouraged to align each of their objectives to business and team goals, and behavioural expectations are set in relation to our Values.
This ensures that clear expectations are set for not only ‘what’ employees are expected to deliver, but also ‘how’ they are expected to go about it.
Individual performance is then evaluated against both the ‘what’ (performance against objectives) and the ‘how’ (demonstration of our Values).
This evaluation takes into account various factors including:
 performance against agreed objectives (both financial and non-financial) and core job responsibilities
 adherence to relevant risk policies and procedures and control frameworks
 behaviour in line with Barclays’ Values
 colleague and stakeholder feedback
 input from the Risk and Compliance functions where there are concerns about the behaviour of any individuals or the risk of the business
undertaken.
There is no specific weighting between the financial and non-financial considerations for employees because all of them are important to the
determination of the overall performance assessment.
Linking individual performance assessment and remuneration decisions to both the Barclays’ business strategy and our Values in this way promotes
the delivery of sustainable individual and business performance, and establishes clear alignment between remuneration policy and Barclays’ strategy.
This section sets out Barclays’ remuneration policy for all employees, explaining the philosophy underlying the structure of remuneration
packages, and how this links remuneration to the achievement of sustained high performance and long-term value creation.
Remuneration policy for all employees