Barclays 2015 Annual Report Download - page 99

home.barclays/annualreport Barclays PLC Annual Report 2015 I 97
Total Fixed Pay
The Directors’ remuneration policy sets out the policy on RBP for executive Directors. Following the EBA Guidelines, published in December 2015, and
despite the formal power to reduce RBP in the Directors’ remuneration policy, the Committee has agreed, as they also did in 2015, that total fixed pay
(salary and RBP elements) will not be reduced in 2016. The Committee will review the structure of RBP in light of the change in regulation and any
changes will be reflected in the Directors’ remuneration policy which will be presented to shareholders for approval at the 2017 AGM.
Clawback and malus
Clawback applies to any variable remuneration awarded to the executive Directors on or after 1 January 2015. Barclays may apply clawback if at any
time during the seven year period from the date on which any variable remuneration is awarded: (i) there is reasonable evidence of individual
misbehaviour or material error, and/or (ii) the firm suffers a material failure of risk management, taking account of the individual’s proximity to, and
responsibility for, that incident. For variable remuneration awards granted to executive Directors in respect of 2016 onwards, the clawback period may
be extended to 10 years in circumstances where the Company or a regulatory authority has commenced an investigation which could potentially
lead to the application of clawback.
As set out in the Directors’ remuneration policy, malus provisions will continue to apply to unvested deferred awards.
Deferral
A seven year deferral period (with no vesting prior to the third anniversary of award, and vesting no faster than on a pro rata basis between the third
and seventh year), will apply to any deferred variable remuneration awarded to the executive Directors in respect of the 2016 performance year
onwards.
2016 Annual bonus performance measures
Performance measures with appropriately stretching targets have been selected to cover a range of financial and non-financial goals that support
the key strategic objectives of the Company. The performance measures and weightings are shown below.
Financial (50% weighting)
A performance target range
has been set for each
financial measure.
 Adjusted profit before tax (20% weighting)
 Adjusted costs (10% weighting)
 CET1 ratio (20% weighting)
Balanced Scorecard
(35% weighting)
Progress towards the five year Balanced Scorecard targets will be assessed by the Committee at the year end.
Each of the 5Cs in the Balanced Scorecard will have equal weighting
Personal (15% weighting) The executive Directors have the following joint personal objectives for 2016:
 structure the business effectively, ensuring it is focused on a sustainable core proposition with a simpler
performing portfolio, with the majority of restructuring completed in 2016
 make significant progress in exiting Non-Core by the end of 2016
 deliver on financial commitments with particular focus on improvement in cost and productivity, as evidenced
by an improved profit and a lower cost:income ratio
 manage risk and conduct effectively and make significant progress in ensuring that legacy events are both
resolved expediently and not repeated.
In addition, individual personal objectives for 2016 are as follows:
Jes Staley:
 implement the new management structure to support structural reform, including a new operating model
designed to improve efficiency
 make substantive progress towards a higher performing culture in line with our Values, while strengthening
employee engagement at all levels
 foster an externally focused and customer-centric culture.
Tushar Morzaria:
 demonstrate effective management of external relationships and reputation
 strengthen the performance ethic and employee engagement in Group Finance, Tax and Treasury, while also
improving productivity.
Detailed calibration of the Financial and Balanced Scorecard targets is commercially sensitive and it is not appropriate to disclose this information
externally on a prospective basis. Disclosure of achievement against the targets will be made in the 2016 Annual Report subject to the targets no
longer being commercially sensitive. The Committee may exercise its discretion to amend the formulaic outcome of assessment against the targets.
Any exercise of discretion will be disclosed and explained.
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