Barclays bosses’ bonuses slashed after revenues fall in tough 2013
BARCLAYS will today announce smaller share awards for top executives despite the bank increasing its overall bonus pool, as the bank’s profits fell in 2013.
The bank’s adjusted profits fell by 32 per cent last year, but the bonus pool increased by 10 per cent to £2.4bn. Chief executive Antony Jenkins defended the move, arguing staff in the US were increasingly leaving the bank to work for more generous competitors.
By contrast the executive team is set to receive lower share awards in light of the poor results.
Jenkins himself is taking no bonus for 2013 as he asked investors for more money in a fundraising round last summer.
Jenkins also said it would not be appropriate because the bank continues to face legal action and compensation bills around the Libor, foreign exchange and mis-selling scandals.
He also took no bonus for 2012.
However, the chief will receive up to £4m in deferred bonuses that were awarded in the years when he ran the retail and business banking arm of Barclays.
The rest of the executive team are set to receive lower share awards in light of the poor results.
The payments across the top 12 staff could come in at around £32m, according to Sky News, a fall of 20 per cent on the year.
Such a steep decline is in part due to the departure of high-earning investment banking boss Rich Ricci, but also reflects the year’s performance.
Although the payouts are lower this year, they may be more stable in future as bonuses are cut and replaced with new allowances.
These role-based payments are designed to let the bank keep paying top staff despite the incoming bonus cap from the EU.
Europe’s cap limits variable pay to twice the level of a banker’s salary, and so banks including Lloyds and HSBC are joining Barclays in making additional fixed payments to staff to plug the gap.