Barclays ARA - Summary report on remuneration

Full details of the Group’s remuneration policy as well as the details of Directors’ remuneration earned during 2004 can be found in the Report on Remuneration in the Annual Report 2004. This can be accessed via the Group’s website at www.investorrelations.barclays.co.uk.

Statement from the Chairman of the Board HR and
Remuneration Committee (the Committee)

This report summarises the current components of the remuneration policy and details the remuneration for each person who served as a Director during 2004. Barclays emphasis on reward for performance, and alignment with shareholders’ interests, is illustrated by the following points:

Executive Directors’ bonuses for 2004 reflect very strong corporate performance for the year. Group profit before tax and Group economic profit1 are 20% and 32% higher than in 2003.
Barclays TSR for 2004 was 23%, which was higher than both the average for the peer group and the FTSE 100 Index. 2004 was the first year of a four-year performance cycle, a period during which the primary goal is to deliver top quartile TSR relative to peers. Barclays was ranked first for 20042.
The main performance condition for executive Directors in the Incentive Share Option Plan (the ISOP) is TSR relative to a peer group of 11 other major banks. The maximum number of shares under option vests only if Barclays is ranked first in the peer group. The 2001 grant under the ISOP vested in 2004. Barclays was ranked 4th of the 12 banks. This performance was sufficient for 25% of the maximum number of shares under the TSR condition to vest. The other 75% lapsed.
Executive Directors each have a personal interest in Barclays shares, through shares they own, and shares and share options held in employee share plans on their behalf. A significant proportion of the annual bonus is made up of an award over Barclays shares deferred for a period of at least three years.

The Committee unanimously recommends that you vote to approve the full Remuneration Report at the AGM.

Sir Nigel Rudd
Chairman of the Board HR and Remuneration Committee

1 Economic profit (EP) is defined as profit after tax and minority interests plus certain gains (and losses) reported within the statement of total recognised gains and losses where they arise from the Group’s business activities and are in respect of transactions with third parties, less a charge for the cost of average shareholders’ funds (which includes purchased goodwill).

2 TSR above is calculated on a gross dividend reinvestment basis.




Disclaimer and Forward-looking Statements		© Barclays PLC 2005