8th Jun 2006 07:01
Barclays PLC08 June 2006 8th June 2006 Barclays Announces Board Changes Barclays PLC ("Barclays") and Barclays Bank PLC ("Barclays") announce thefollowing changes to its Board. Frederik (Frits) Seegers is appointed to the new position of Chief Executive ofGlobal Retail and Commercial Banking and to the Boards of both Barclays PLC andBarclays Bank PLC with effect from 10th July 2006. He also joins the BarclaysGroup Executive Committee. In this role he will assume responsibility for allthe Barclays retail and commercial banking operations globally. This includes UKBanking (Retail and Business), International Retail and Commercial Banking, andBarclaycard. He will report to John Varley, Group Chief Executive. There will beno change to the financial reporting structure of the Group. Frits joins from Citigroup where he held senior positions over 17 years spanningfour continents. He was a member of the Citigroup Operating Committee. Mostrecently he was CEO Global Consumer Group, with a remit covering all retailoperations in Europe, Middle East and Africa. Prior to this he was ExecutiveVice President for International Retail and International Cards, withresponsibility for all retail banking and credit cards outside the USA. Between 2001 and 2004, Frits was CEO of Consumer Banking for Asia Pacificcovering 11 consumer markets. Under his leadership, this region was the fastestgrowing part of Citigroup. Prior to this he developed internet banking forCitibank and held various posts including Division Executive for Japan,President of Citibank California, Marketing Director for Citibank Direct andMarketing Director Citibank Belgium. He joined Citigroup in Germany in 1989 asan Associate. Frits was born and educated in the Netherlands and holds MastersDegrees in engineering from Delft University of Technology and in finance fromthe University of Chicago. Gary Hoffman, currently Chairman of UK Banking and Chairman of Barclaycard, isappointed to the position of Group Vice Chairman with effect from 10th July2006, reporting to John Varley and accountable on the Board for a range ofresponsibilities including Corporate Responsibility, Public Policy, Equality andDiversity, leading the Group's response to the FSA's Treating Customers Fairlyinitiative, chairing the Group's Governance and Control Committee and franchisehealth with customers, employees and communities. David Roberts, Chief Executive of International Retail and Commercial Banking(IRCB), will leave Barclays later this year. Until then David will remain on theBoards of Barclays and Absa managing the announced sale of FCIB to CIBC and theproposed sale of Barclays Africa to Absa until he leaves Barclays. Hisresponsibilities for IRCB will pass to Frits Seegers on 10th July 2006. TheBoard thanks Mr Roberts for his significant contribution to the Group's businessover many years and wishes him well for the future. John Varley, Group Chief Executive of Barclays PLC, says: "The scale of both our retail and commercial banking interests, and cardbusinesses within the UK and internationally, requires a single point ofstrategic control and direction as we accelerate our drive for growth and profitdiversification. This structure will help us bring the best of Barclays to allpoints of contact with our customers. I am delighted to appoint Frits Seegers tothis role. He is one of the industry's most successful, talented, and provenleaders in the global field of retail and commercial banking. I want also tothank David Roberts for his great contribution to Barclays." Frits Seegers says: "I am greatly looking forward to joining Barclays. The opportunities for theportfolio of businesses are significant and compelling and I am very excited atthe prospect of leading the retail and commercial operations to its next levelof growth." Details of Mr Seegers' contractual arrangements are attached to thisannouncement. ENDS Contractual Arrangements and Interests in Shares The appointment of Mr Seegers as an Executive Director of Barclays PLC andBarclays Bank PLC ("Bank") will become effective on 10th July 2006. Service Contract Key terms of the service contract for Mr Seegers, who becomes an ExecutiveDirector on 10th July 2006, are set out below. Job Title Chief Executive of Global Retail and Commercial Banking. Salary Basic salary: £700,000 per annum. Performance Related Bonus The Board HR and Remuneration Committee will, in line with our usual practice,determine the size of any award, which will be discretionary, dependent on bothbusiness and individual performance. For 2006, a guaranteed bonus comprising a cash bonus of £1,200,000 and adeferred share based award of £400,000 has been agreed. Long Term Incentive Plan (Performance Share Plan) The Board HR and Remuneration Committee will, in line with its usual practice,determine the size of awards of performance shares to be made each year underthe shareholder approved Performance Share Plan. The 2006 award is for aninitial allocation of £1,000,000 under the plan. Buy-Out Arrangements Mr Seegers forfeited compensation (both annual and Long Term Incentive) whichwill be replaced through a combination of cash payments and share awards. Onjoining, Mr Seegers will receive a cash payment of £3,408,000 and a restrictedshare award of £5,086,000 vesting in June 2007 (80%), June 2008 (10%), and June2009 (10%). Benefits Benefits in kind, which may include life cover, the use of a company car or cashequivalent, medical insurance and tax advice will form part of Mr Seegers'service contract. Pension Mr Seegers will receive an annual cash payment of 25% of his annual salary. Notice Period The service contract provides for a notice period of 12 months from Barclays ora notice period of 6 months from Mr Seegers. Severance Arrangements On termination, the service contract for Mr Seegers provides for a pro-ratedphased payment of his notice entitlement and he has an explicit duty to mitigatehis loss. Contract Availability The service contracts for all Executive Directors of Barclays PLC and the Bankare held by Barclays Corporate Secretariat and are available for inspectionduring normal business hours at the Group's Head Office: 1 Churchill Place,London, E14 5HP. Mr Seegers' contract will be available for inspection from 10thJuly 2006. Beneficial Interests in Barclays PLC Ordinary Shares Mr Seegers has no beneficial interests in the ordinary shares of Barclays PLC. Potential Interest in Shares held in Group Employee Benefit Trusts In addition, Mr Seegers will, together with the other Directors and SeniorExecutives of Barclays PLC, have an interest as potential beneficiaries in163,194,184 Shares held by the independent trustees of the Barclays GroupEmployee Benefit Trusts. These are discretionary trusts established for thebenefit of Barclays Group employees and former employees (and in each case theirfamilies) all of whom are amongst the potential beneficiaries under these trustsand are, therefore, regarded for Companies Act purposes as being interested inthe Shares held in them. No consideration is payable by a potential beneficiaryfor the acquisition of such an interest under the trusts. There are no other details that are required to be disclosed in respect of MrSeegers' appointment under Paragraph 9.6.13 of the Listing Rules of the UKListing Authority. For further information please contact:- Media Relations Investor RelationsStephen Whitehead/Jason Nisse/Alistair Smith Anne Ramsay+44 (0) 20 7116 6060/6223/6132 +44 (0) 20 7116 8171 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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