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Summary Corporate Governance Report |
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Chairman’s Statement
At Barclays, we are committed to having robust Corporate Governance practices in place and applying the highest standards of business integrity in all of our activities.
2003 has been another year in which Corporate Governance has been the focal point of public and regulatory attention. In July we saw the publication in the UK of the revised Combined Code on Corporate Governance. While Barclays is not required to report on compliance with the new Combined Code until the 2004 Annual Report, we are making every effort to comply with it as soon as possible.
Our commitment to complying with the revised Code was exemplified by our approach to the communication of our succession plans in October 2003. The Chairman of the Board Remuneration Committee, Sir Nigel Rudd, led the non-executive Directors in seeking my replacement as Chairman.
I set out in my letter to shareholders dated 6th November 2003 the reasons why the Board came to its decision to appoint Matthew Barrett as Chairman. In summary, the Board felt that his appointment was in the best interests of shareholders at this particular point in Barclays development. His appointment helps ensure stability within the senior leadership team at a time when a number of senior managers have been given revised and broader responsibilities. The Board also felt that Mr Barrett was the right person for the job given the need to continue to implement our strategy, which has been shown to be successful and value-creating for shareholders. In this respect, Barclays financial results in 2003 were very strong. The Board was also conscious that Mr Barrett has only been with Barclays for four years and was keen to ensure we obtained maximum value from his contribution, given the success Barclays has enjoyed under his leadership.
The Board’s decision to appoint Mr Barrett followed an extensive and rigorous process involving all the non-executive Directors. They considered all the desirable characteristics for a new Chairman and also assessed external candidates. Mr Barrett was the Board’s unanimous choice. The Board does not regard his appointment as setting a precedent in Barclays for appointing the Group Chief Executive to the position of Chairman.
In conclusion, the Board is not complacent on Corporate Governance. As you will see, the Board and its Committees have made continued strides to show Barclays as an exemplary organisation in the field of Corporate Governance. The Group will continue to play an active role in the ongoing debate on the development of Corporate Governance best practice, promoting greater openness and transparency rather than prescriptive regulation.
Sir Peter Middleton
Chairman
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