News Column

Banking: Barclays forecast to give out even bigger bonuses

February 7, 2014

Jill Treanor

Barclays will today begin to hand out bonuses to its 140,000 staff around the world from a bonus pot expected to be bigger than last year's.

In a move that could inflame relations with investors after its pounds 5.8bn cash call last year, the bank is thought to be planning to hand out larger bonuses to some staff than a year ago to prevent them quitting for higher paying rivals.

The bank is ready to outline new payments to top staff who will be affected by the EU's bonus cap. The limits on bonuses of 100% of salary - or 200% if shareholders approve - will take effect this time next year, but from next month Barclays is expected to begin handing the hundreds of staff affected a third payment that it hopes will not be classed as either a bonus or a salary.

The European Banking Authority and the EU are now scrutinising these to see whether they contravene the bonus clampdown. Other banks are thought to be looking at similar third payments.

A spokesperson for the European commission said: "The issue seems to be what counts as fixed and what counts as variable pay and thus how the ratio works. There is no third form of payments: either it is fixed or it is variable remuneration. One would expect banks to interpret this in a common sense and straightforward way without trying to circumvent it." Jill Treanor

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Source: Guardian (UK)

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