7 May 2009

Barratt - Personalised TSR Vesting Schedule

Barratt Developments have personalised TSR schedule to find median and upper quartile performance positions.  Using companies 51 to 100 in the FTSE 100, it takes the average of the top two performing companies and the average of the bottom two performing companies and then, in effect draws a line between the two points  from which can be calculated the median and the upper quartile.  A simialr approach has been follwed by Bellway but they use the TSR construct to get the TSR median and then assume upper quartiel is equivilent to 7.5% based upon historic analysis.  BUT see the latest R&A where there have been substancial changes for 2009.