Barclays 2015 Annual Report Download - page 95

home.barclays/annualreport Barclays PLC Annual Report 2015 I 93
A summary of the Committee’s assessment against the Balanced Scorecard performance measure over the three year performance period is
provided below.
Category Performance
Vesting out of
maximum 4%
for each ‘C’
Customer and Client The Customer and Client Relationship metrics remained stable at 4th place as a strong
performance in corporate banking, combined with improvements in Barclaycard UK and
Barclays current accounts, was offset by the impact of reshaping the Wealth business and
competitive challenges in South Africa. The Client Franchise Rank remained stable at 5th place
in challenging market conditions.
2%
Colleague There has been continued advancement towards Barclays’ 2018 gender goal of 26% women
in senior leadership roles; at 23% by the end of 2015.
Sustained Engagement is currently 75%, a positive result in light of the ongoing change the
organisation has experienced in 2015. Further work is required to achieve the 2018 target.
2%
Citizenship In Citizenship Plan, 10 out of 11 metrics on target shows Barclays is having a positive impact
on the communities in which it operates, with lending to households the only initiative to lose
momentum primarily as a result of market and trading conditions.
3%
Conduct While Conduct reputation as measured by the YouGov survey improved over the period, the
Committee nevertheless determined that, by reference to the material conduct events that
crystallised during the performance period, nil vesting was appropriate.
0%
Company There has been a significant strengthening in the CET1 ratio, which is ahead of 2018 target,
however work remains to deliver an acceptable return to shareholders, with adjusted
RoE slightly down on 2014.
2%
Total 9%
The LTIP award is also subject to a discretionary underpin whereby the Committee must be satisfied with the underlying financial health of the
Group based on profit before tax. The Committee was satisfied that this underpin was met, and accordingly determined that the award should be
considered for release to the extent of 39% of the maximum number of shares under the total award. The shares are scheduled to be released 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.
2015 Annual bonus outcomes
The Committee considered each of the eligible executive Directors’ performance against the financial and non-financial measures which had been
set to reflect the strategic priorities for 2015. Performance against their individual personal objectives (15% weighting overall) is assessed on an
individual basis. The Committee may exercise its discretion to amend the formulaic outcome of assessment against the targets.
Financial (50% weighting)
The approach taken to assessing financial performance against each of the financial measures is based on a straight line outcome between 25% for
threshold performance and 100% applicable to each measure for achievement of maximum performance.
The formulaic outcome from 2015 performance against the financial measures gave a total of 22.1% out of 50% being payable attributable to those
measures. A summary of the assessment is provided in the following table.
Financial
performance measure Weighting
Threshold
25%
Maximum
100%
2 0 15
Actual
2015
Outcome
Adjusted profit before tax 20% £5,801m £7,022m £5,403m 0.0%
Adjusted costs (ex CTA) 10% £16,780m £15,182m £16,205m 5.2%
CET1 ratio 10% 10.47% 11.34% 11.4% 10.0%
Leverage ratio 10% 4.17% 4.72% 4.5% 6.9%
Total Financial 50% 22.1%
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