Barclays 2015 Annual Report Download - page 96

94 I Barclays PLC Annual Report 2015 home.barclays/annualreport
Governance: Remuneration report
Annual report on Directors’ remuneration
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 a ‘met’ target, and 6% or 7% for ‘above’ target
progress against a particular Balanced Scorecard component.
Based on this approach to assessing performance against 2015 Balanced Scorecard milestones, the Committee agreed a 15% outcome out of a
maximum of 35%. A summary of the assessment is provided in the following table.
Balanced Scorecard – 5 Cs Weighting Metrica
2 0 15
Target
2 0 15
Actual
2 0 15
Assessment
by the
Committee
2015
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
Client Franchise Risk
4th
5th
4th
5th
Met target
Met target
4.0%
Colleague 7% Sustained engagement of colleagues’ score
% women in senior leadership
82-88%
23%
75%
23%
Below target
Met target 2.0%
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
CET1 ratio
5.9%
11.0%
4.9%
11.4%
Below target
Above target 3.0%
Total Balanced Scorecard 35% 15.0%
Note
a Further details in respect of each metric can be found on pages 12 to 16.
Individual outcomes including assessment of personal objectives
Performance against each of the executive Directors’ individual personal objectives (15% weighting overall) was assessed by the Committee on an
individual basis.
(i) Antony Jenkins
A summary of the assessment for Antony Jenkins against his specific performance measures is provided in the following table.
Performance measure Weighting Outcome
Financial See table on page 93 50% 22.1%
Balanced Scorecard – 5Cs See table above 35% 15.0%
Personal objectives Judgemental assessment – see below 15% 11.0%
Total 100% 48.1%
Final outcome approved by the Remuneration Committee 48.1%
The Committee determined at the time of his departure that he would remain eligible for a pro-rated 2015 bonus for the part of the year in which he
was Group Chief Executive, subject to an assessment post year end of the relevant performance measures and the general discretion of the
Committee. Although it was deemed the appropriate time for Barclays to change Group Chief Executive in mid-2015, 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. He was also responsible for ensuring that the Conduct Risk Framework was embedded into the business. Given Antony Jenkins’ overall
personal performance in the first half of the year, the Committee judged that 11% of a maximum of 15% was appropriate.
In aggregate, the performance assessment resulted in an overall formulaic outcome of 48.1% of maximum bonus opportunity being achieved. The
resulting 2015 bonus, pro-rated for service, is £505,000.
(ii) Tushar Morzaria
A summary of the assessment for Tushar Morzaria against his specific performance measures is provided in the following table.
Performance measure Weighting Outcome
Financial See table on page 93 50% 22.1%
Balanced Scorecard – 5Cs See table above 35% 15.0%
Personal objectives Judgemental assessment – see below 15% 13.0%
Total 100% 50.1%
Final outcome approved by the Remuneration Committee 50.1%
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, encouraging focus on the simplification of the operating model, including
improved process and technology. He managed external relationships very effectively, in particular with shareholders, investors and regulators. He
personally worked hard on improving colleague engagement and diversity and actively participated in supporting and promoting Barclays’ Citizenship
agenda. He has managed risk effectively and embedded a positive risk culture. He has also fully embedded the Conduct Risk Framework into the
activities of Group Finance, Tax and Treasury. The Committee, in particular, recognised Tushar Morzaria’s role in the significant improvement in the
Bank’s capital position and in driving further focus on close and effective cost management during 2015. Given this strong personal performance, the
Committee judged that 13% of a maximum of 15% attributable to individual objectives was appropriate.
As a result, the formulaic outcome for Tushar Morzaria was 50.1% of maximum bonus opportunity. The resulting 2015 bonus is £701,000.