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Summary Report on Remuneration
Introduction
Barclays seeks to ensure that reward policies are aligned with the objective of maximising shareholder value. This extends to all employees throughout the business, as well as executive Directors. This report provides a summary of the information set out in the full Report on Remuneration contained in the Annual Report 2000.
Our Reward Vision and Principles
Barclays is committed to using reward to reinforce a strong performance culture whereby excellence is expected at every level throughout the business: Our Group-wide vision reflects this commitment: “Barclays values excellence: employees can expect outstanding reward for outstanding performance”.

Barclays reward vision is supported by the following principles:

  • align the interests of employees and shareholders to deliver value     creation;
  • recognise excellent performance of Group, business and individual;
  • encourage the right behaviours to achieve excellent performance;
  • reward is to be commercially competitive;
  • managers are to be accountable for reward decisions; and
  • reward is to be transparent, well communicated and easily understood.


    		•
    Changes in 2001
    Building upon the reward vision and principles outlined above, it is intended that all employees should understand better what they need to do to achieve excellence and how this links to reward.

    The 2001 performance bonus for the executive Directors will be explicitly linked to Group Economic Profit (EP) performance during 2001 in addition to their individual performance measured against a set of personal objectives. The potential bonus for 2001 for superior individual performance combined with on-target EP results could trigger bonuses of 60% and 50% of base salary for the Group Chief Executive and other executive Directors, respectively. Consistent with our commitment to performance based reward, bonuses could be zero if individual and/or Group performance were poor. Where an individual achieves outstanding performance and the Group exceeds its EP targets, this will be reflected in the level of bonuses. For 2001, the maximum bonus will be 150% of base salary for the Group Chief Executive and 125% for other executive Directors.

    The Reward Package
    The reward package for the executive Directors and other senior executives comprises:

  • base salary;
  • annual bonus and the Executive Share Award Scheme (ESAS) ;
  • the Incentive Share Option Plan (ISOP); and
  • pension arrangements.


    		•
    Service contracts
    The Group currently has service contracts with its Chairman, executive Directors and senior executives. The service contracts for Sir Peter Middleton, Mr Lendrum, Mr Stewart and Mr Varley, and other senior executives in the Group, provide for a notice period from the Group of one year, and normally for retirement at age 60. The unexpired term of the service contracts for Sir Peter Middleton, Mr Lendrum and Mr Stewart, who will each be seeking re-election at the annual general meeting in 2001, is 12 months. Peter Jarvis, Sir Brian Jenkins and Stephen Russell, who will also be seeking re-election at the annual general meeting, do not have service contracts. Mr Barrett, who was appointed Group Chief Executive on 1st October 1999, has a service contract which provides for a notice period from the Group of two years during the first two years of the contract. The provisions give the Group the option of terminating the contract by making a pre-determined compensation payment equivalent to two times annual basic salary, pension contribution and expatriate allowance but excluding any compensation in relation to bonus. After two years, both the notice period and the pre-determined compensation reduce to one year. If Mr Barrett’s contract is terminated following a change of control of Barclays, pre-determined compensation is payable equivalent to twice annual basic salary, pension contribution, bonus and other benefits. These provisions were negotiated as part of the arrangements for Mr Barrett’s appointment.

    The Board Remuneration Committee has considered the extent to which executive Directors’ service contracts should deal with payments in the event of termination of the contract. Overall, the Committee’s approach when considering payments in the event of termination is to review all the relevant circumstances, including any commitments made in a Director’s service contract and the length of the notice period, and make its decision based on the information then available.

    Remuneration of non-executive Directors
    Non-executive Directors do not have service contracts with the Group. Their fees are determined by the Board and reflect their individual responsibilities, including membership of Board committees. Non-executive Directors are not normally eligible for bonuses. Barclays encourages its non-executive Directors to build up a holding in the Company’s shares. Fees include an amount of not less than £7,500 which, after tax, is used to buy shares in the Company for each non-executive Director with the exception of Sir Andrew Large.

    2000 Annual Remuneration
    Annual
    Salary cash Profit 2000 1999 ESAS (C)         
    & fees Benifits(b) bonus share Total Total 2000 1999
    £000 £000 £000 £000 £000 £000 £000 £000
    Chairman
    Sir Peter Middleton (d) 539 9 - 8 556 1,759 - -
    Executive
    M W Barrett 850 246 638 8 1,742 1,346 276 276
    C J Lendrum 338 6 263 8 615 490 114 81
    J M Stewart (e) 84 3 59 8 154 - - -
    J S Varley 388 6 263 8 665 627 114 114
    Non-Executive
    T D G Arculus 42 - - - 42 47 - -
    M E Baker (g) 46 - - - 46 51 - -
    H M Cropper 41 - - - 41 47 - -
    P J Jarvis 49 - - - 49 54 - -
    Sir Brian Jenkins (h) 18 - - - 18 - - -
    Sir Andrew Large 175 - - - 175 227 - -
    Sir Nigel Mobbs 61 - - - 61 64 - -
    Sir Nigel Rudd 45 - - - 45 50 - -
    S G Russell (h) 7 - - - 7 - - -
    Former Director
    D P Allvey (i) 475 13 190 8 686 445 - 124


    Notes
    (a) Emoluments include amounts, if any, payable by subsidiary undertakings and by other companies where services are undertaken at the Group’s request.

    (b) Executive Directors receive benefits in kind, which may include the use of a company owned vehicle, housing allowance, medical health insurance and beneficial loans, on similar terms to other senior executives.

    (c) The amounts shown for ESAS 2000 represent payments which are expected to be made to the trustee to fund the provisional allocation of shares in 2001, including a maximum potential 30% bonus share element.

    (d) Sir Peter Middleton receives pension payments through the Barclays Bank Retirement Plan. Details of the payments are not included since the amounts do not relate to his current duties.

    (e) Mr Stewart’s salary, benefits and bonus are the amounts paid in respect of his services since his appointment as a Director on 25th October 2000.

    (f) Fees to non-executive Directors (with the exception of Sir Andrew Large) include an amount of not less than £7,500 which, after tax, is used to buy shares in the Company for each non-executive Director.

    (g) Mary Baker retired from the Board on 31st December 2000.

    (h) Sir Brian Jenkins and Mr Russell’s fees are the amounts paid in respect of services since their appointment as non-executive Directors on 25th October 2000.

    (i) The Group agreed with Mr Allvey that he would resign from the Board and from his position as Finance Director on 9th November 2000 and that his employment would be terminated as at 31st December 2000. Mr Allvey received compensation in accordance with the terms of his contract of employment of £1,615,000 in respect of salary, bonus and pension contributions, plus outplacement support to a maximum of £15,000.