Salz Review - Wall Street Journal

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Salz Review
An Independent Review of Barclays’ Business Practices
Total Shareholder Return
Total Shareholder Return (TSR) is publicly used by Barclays as a way to measure value
created for shareholders. Until 2006, Barclays created significant value for its shareholders:
£100 invested in Barclays’ shares at the end of 2000 would have been worth £179 at the
end of 2006 as the sum of the share price at the time and accumulated dividends,
representing a compound annual growth rate of 10%. Nonetheless, this has been reducing
value since then, as the same shares would be only worth £78 at the end of 2012.
Index of Barclays’ TSR, 2000 – 2012
Index of Total Shareholder Return
200
+10%
150
-22%
100
50
0
100
2000
113
2001
79
2002
107
2003
132
2004
143
2005
179
2006
129
2007
44
2008
79
2009
76
2010
52
2011
78
2012
Note: Index of TSR represents the year-end value (in £), as the sum of the share price at the time and accumulated dividends,
of £100 invested in Barclays shares at the end of 2000
Source: Annual reports
Barclays’ share price evolution, 2002 – 2013
£
900
800
700
600
500
400
300
200
100
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Note: Closing price per share; Latest date considered is 18 March 2013
Source: Bloomberg