Barclays Increases Bonus Payments for Senior Staff in Investment Bank -- Financial News
February 18 2021 - 7:03AM
Dow Jones News
By Paul Clarke
Of Financial News
Barclays PLC increased average bonus payments for some of its
top staff in the division housing its investment bank, despite
regulatory calls for restraint on pay at U.K. lenders.
The average bonus payment for so-called material risk
takers--senior employees whose behavior influences the risk profile
of the bank--within Barclays International increased by 14% to
around 636,000 pounds ($881,687), according to analysis of figures
provided in the bank's annual results. Barclays International,
which comprises its corporate and investment bank as well as its
cards and payments unit, was buoyed by record performance in the
U.K. lender's sales and trading and advisory businesses.
Barclays spent a total of GBP1.1 billion on 1,129 MRTs within
its international unit--by far the biggest number of people across
the group--up from around GBP1 billion in 2019. Of that number, 942
people received variable compensation, with the bank spending
GBP599 million, up from GBP482 million on 865 senior staff in
2019.
Overall, the bonus pool for senior staff within Barclays
International increased by 24% to GBP599 million.
Within the C-suite, however, the U.K. lender has cut variable
pay. Barclays spent GBP28 million on 15 senior executives
classified as MRTs, or an average payment of around GBP1.9 million,
in 2020 compared to an average payment of GBP2.3 million for 13
executives in 2019. Barclays bosses, including Chief Executive Jes
Staley, chairman Nigel Higgins and group finance director Tushar
Morzaria, donated one-third of their pay to Covid-19 relief efforts
in April 2020
In March, the Bank of England told U.K. lenders to stop paying
dividends and cash bonuses to their senior executives, including
material risk takers, but these numbers applied to 2019 payments.
In a December letter, the regulator said it expects banks to
exercise a "high degree of caution and prudence" given the
"uncertain outlook" on bonus payments.
Across the bank, Barclays's bonus pool increased by 6% to around
GBP1.6 billion for 2020. Meanwhile, the number of MRTs earning over
1 million euros ($1.2 million) in 2020 increased by 4% to 557
people.
In response to a question about the bonus increase during a call
with journalists, Mr. Staley said that "profitability was driven by
our wholesale business and we need to be responsive to that."
Barclays investment bank profits increased by 29% to GBP2.6
billion, with its sales and trading reaching new highs during the
year, with GBP5.1 billion in fixed income trading alone.
Website: www.fnlondon.com
(END) Dow Jones Newswires
February 18, 2021 06:48 ET (11:48 GMT)
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