Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 204 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Remuneration philosophy To attract and retain the people who can best deliver for our practices are transparently communicated and enable us to customers and clients, we must pay fairly and appropriately – reward sustainable performance in line with our Values, Mindset balancing the interests of all our stakeholders. Our policies and and risk expectations. This is our remuneration philosophy. Philosophy Long-term success depends on the talent of our employees. This means attracting and retaining an Attract and retain talent needed to appropriate range of talent to deliver against our strategy, and paying the right amount for that talent. deliver Barclays’ strategy Remuneration should be designed with appropriate consideration of the views, rights and interests of Align pay with investor and other stakeholders. This means listening to our shareholders, other investors, regulators, government, stakeholder interests customers and employees and ensuring their views are appropriately represented in remuneration decision-making. Sustainable performance means making a positive and enduring difference to investors, customers Reward sustainable performance and communities, taking pride in leaving things better than we found them and playing a valuable role in society. Results must be achieved in a manner consistent with our Values. Our Values, culture and Mindset Support Barclays’ Values and culture should drive the way that business is conducted. Designed to reward employees for achieving results in line with the Group’s risk appetite and conduct Align with risk appetite, risk exposure expectations. and conduct expectations We are committed to ensuring pay is fair, simple and transparent for all our stakeholders. All employees Be fair, transparent and as simple as and stakeholders should understand how we reward our employees, and fairness should be a lens possible through which we make remuneration decisions. Specifically relating to our Executive Directors, we review the Our philosophy in action performance measures for the forward-looking incentives each Our remuneration philosophy applies to all of our employees year to ensure that we maintain alignment with our strategic globally, including our Executive Directors. The pay decisions set priorities and KPIs, and to ensure that the measures we select out in this report are a result of the application of our continue to be appropriate in light of current circumstances and remuneration philosophy during 2022. challenges. Alongside our key financial measures, our strategic Our philosophy and the way that we approach remuneration is non-financial performance objectives aim to ensure that the link designed to be as simple and clear as possible, while ensuring between individual incentive outcomes and the delivery of our strong alignment with risk and conduct as well as our Values and strategy, and the achievement of sustainable long-term Mindset. It is closely aligned with Provision 40 of the FRC’s UK performance, continues to be reinforced. The alignment of Corporate Governance Code, as shown in the table later in this executive pay to our culture was further supported by the section, and we have continued to be transparent on the resulting continued inclusion in the personal objectives for our Group Chief outcomes in this report. Executive of the responsibility to embed our Mindset across the We seek to consider the views of all of our stakeholders in organisation and continue to develop a high-performing culture in remuneration decision-making. In 2022, we achieved this by line with our Values. meeting with institutional shareholders to understand their views on our 2021 pay outcomes, engaging extensively with our regulators to ensure appropriate compliance with regulatory requirements, and continuing our partnership with Unite the Union in the UK to understand the views of their members and agree a new pay deal. We used our 2021 Fair Pay Report and internal communication channels to share information on our approach to pay with colleagues, including how executive remuneration aligns with the wider workforce pay policy, and we are now publishing our fifth Fair Pay Report to help do the same for 2022.