Barclays 2015 Annual Report Download - page 97

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Executive Directors: other LTIP awards
The Directors’ remuneration reporting regulations require inclusion in the single total figure of only the value of the LTIP awards whose last year of
performance ends in the relevant financial year and whose vesting outcome is known. For 2015, this is the award to Antony Jenkins under the
2013-2015 LTIP cycle and further details are set out on page 92. This section sets out other LTIP cycles in which the executive Directors participate,
the outcome of which remains dependent on future performance.
LTIP awards to be granted during 2016
The Committee decided to make an award under the 2016-2018 LTIP cycle to Tushar Morzaria with a face value at grant of 120% of his fixed pay at
31 December 2015. Jes Staley is not eligible for a grant under the 2016-2018 LTIP cycle.
The 2016-2018 LTIP award will be subject to the following performance measures.
Performance measure Weighting Threshold Maximum vesting
Adjusted return on tangible
equity (RoTE)
25% 6.25% of award vests for average adjusted
RoTE of 7.5%
average adjusted RoTE of 10.0%
CET1 ratio must remain at or above an acceptable level for any of this element to vest.
The threshold will be reviewed and set annually based on market conditions and regulatory
requirements (11% as at 31 December 2016).
CET1 ratio as at 31 December
2018
25% 6.25% of award vests for CET1 ratio of 11.6% CET1 ratio of 12.7%
Cost:income ratio 20% 5% of award vests for average cost:income
ratio of 66%
average cost:income ratio of 58%
Risk Scorecard 15 % Performance against the Risk Scorecard is assessed by the Committee, with input from the Group
Risk function, Board Risk Committee and Board Reputation Committee as appropriate, to determine
the percentage of the award that may vest between 0% and 15%. The Risk Scorecard measures
performance against three broad categories – Risk Profile (including Conduct), Control Environment
and Risk Capability – using a combination of quantitative and qualitative metrics. Specific targets
within each of the categories are deemed to be commercially sensitive. Retrospective disclosure of
performance will be made in the 2018 Remuneration report subject to commercial sensitivity no
longer remaining.
Balanced Scorecard 15 % Performance against the Balanced Scorecard is assessed by the Committee to determine the
percentage of the award that may vest between 0% and 15%. Each of the 5Cs in the Balanced
Scorecard has equal weighting. Assessment will be made against progress towards the 2018
targets as set out on page 11.
Straight line vesting applies between the threshold and maximum points in respect of the financial measures.
The award is subject to a discretionary underpin by which the Committee must be satisfied with the underlying financial health of the Group.
Outstanding LTIP awards
(i) LTIP awards granted during 2014
The performance measures for the awards made under the 2014-2016 LTIP cycle are shown below.
Performance measure Weighting Threshold Maximum vesting
Return on risk weighted assets
(RoRWA)
50% 23% of award vests for average annual
RoRWA of 1.08%
Average annual RoRWA of 1.52%
Loan loss rate 20% 7% of award vests for average annual loan
loss rate of 70bps
Average annual loan loss rate of 55bps or below
Balanced Scorecard 30% Performance against the Balanced Scorecard is assessed by the Committee to determine the
percentage of the award that may vest between 0% and 30%. Each of the 5Cs in the Balanced
Scorecard has equal weighting. The targets within each of the 5Cs are deemed to be commercially
sensitive. However, retrospective disclosure of the targets and performance against them will be
made in the 2016 Remuneration report subject to commercial sensitivity no longer remaining.
Straight line vesting applies between the threshold and maximum points in respect of the RoRWA and loan loss rate measures. If the Committee is
satisfied with the underlying financial health of the Group based on profit before tax, depending on the extent of its satisfaction, the percentage of
Barclays shares that may be considered for release by the Committee under the RoRWA measure can be increased or decreased by 10% of the total
award, subject always to a maximum of 50% of the award. Performance outcome will be determined at the end of the performance period. For Antony
Jenkins, the resulting number of shares will then be pro-rated to his termination date.
(ii) LTIP awards granted during 2015
Awards were made on 16 March 2015 under the 2015-2017 LTIP cycle at a share price on the date of grant of £2.535, in accordance with our
remuneration policy to the executive Directors. This is the price used to calculate the face value below.
% of fixed pay Number of shares Face value at grant Performance period
Antony Jenkins 120% 1,142,248 £2,895,599 2015-2017
Tushar Morzaria 120% 828,402 £2,099,999 2015-2017
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